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R - Reflective loss


15/7/20

SEVILLEJA v MAREX FINANCIAL LTD [2020] UKSC 31

A person who is a creditor and not shareholder of a company is not subject to any rule of law which prevents a claim against the company to recover loss which the company itself has a claim to recover.  The majority of the court confirmed that the rule of law applies only to claims by shareholders to recover loss in value of their shares because only the company suffers that loss, not the shareholder.  The minority of the court doubted that there is any such rule of law and would instead limit such claims by applying rules against double recovery, including subrogation.