Court of Appeal decision confirms severe consequences where business partner for exploitation of oil-extraction technology breached fiduciary duty

The Court of Appeal has substantially upheld the first instance decisions in a lengthy piece of ongoing litigation relating to a joint business venture for the exploitation of oil-extraction technology, illustrating the potentially severe consequences fiduciaries face where they put themselves in a position of a conflict of interests: Gray v Global Energy Horizons Corp … Read more

High Court tests newly narrowed scope of the “reflective loss” rule in first decision since the Supreme Court’s judgment in Marex

In the first decision to consider the so-called “reflective loss” principle since the Supreme Court’s judgment in Sevilleja v Marex Financial Ltd [2020] UKSC 31 earlier this year, the High Court has emphasised the newly narrowed scope of the rule: Broadcasting Investment Group Ltd & Ors v Smith & Ors [2020] EWHC 2501 (Ch). As a reminder, the Supreme Court … Read more

Supreme Court confirms existence and scope of “reflective loss” rule

The Supreme Court’s judgment in Sevilleja v Marex Financial Ltd [2020] UKSC 31 has been eagerly anticipated by financial institutions and brings much needed clarity in respect of the so-called “reflective loss” principle, first established in Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204. By a majority of 4-3, the … Read more