The WLR Daily case summaries
[2021] WLR(D) 349
Court of Appeal
Broadcasting Investment Group Ltd and others v Smith and another
[2021] EWCA Civ 912
2021 May 25; June 18
Asplin, Coulson, Arnold LJJ
Company— Shareholder— Rule against reflective loss— Claimant shareholder alleging breach of contract by defendant— Shareholder claiming for diminution in value of shares caused by actionable loss to company— Company’s right to claim arising from contract purporting to confer benefit on it— Defendant claiming shareholder’s action relating to same loss as that incurred by company contrary to rule precluding recovery of reflective loss— Shareholder claiming statutory right to sue as contractual promisee— Whether claimant’s cause of action preserved as promisee— Whether rule against reflective loss barring promisee’s claim— Whether rule applying where company bringing alternative claim for breach of fiduciary duty—
Contract (Rights of Third Parties) Act 1999 (c 31), ss 1(1)(b), 4