Reflective Loss - A Developing Principle at the Core of Company-Related Litigation

Introduction

The rule against reflective loss is a core principle of English company law with immense significance to litigation involving companies. While the Supreme Court laid down a ‘bright line rule’ in Sevilleja v Marex Financial Ltd, the following years have seen significant appellate decisions which continue to test the contours of the principle.

The rule has led to a great many claims being struck out or summarily dismissed, and it is clear that it continues to be a significant trap for the unwary.

This virtual classroom seminar is aimed at litigators who act for parties involved in litigation involving companies and, particularly, for those who act for shareholders or for parties seeking to pursue remedies for civil fraud where (almost invariably) the assets in question are held in corporate structures.

This live session will address the theory relatively quickly, before moving on to practical scenarios which will provide guidance on how to identify when the rule is engaged, what the consequences are and how to work around the principle to achieve a successful outcome in the face of a reflective loss challenge.

What You Will Learn

This live and interactive course will cover the following:

• The nature of the principle and its place at the heart of English company law
• The supposed ‘bright line rule’ laid down by the Supreme Court in Sevilleja v Marex Financial Ltd
• Difficulties that have arisen post-Marex, which include:
• The position of indirect shareholders
• The position of former shareholders
• Issues concerning the date for the assessment of loss
• Recent illustrations of claims that have been defeated by the reflective loss bar
• Practical avenues to achieve redress in the face of a reflective loss challenge

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.