Reflective loss and the policy of the law

Tuesday, 8 November 2022

The rule against recovery of purely reflective loss prevents recovery by a shareholder of losses suffered only because the company suffered loss caused by the same wrongdoing. What is the legal and policy justification of such a rule, and should it be retained? These questions were recently considered by the Supreme Court of the United Kingdom in Marex Financial Ltd v Sevilleja [2021] AC 39.

The Commercial Law Section is pleased to present a seminar by Richard Scruby SC exploring the basis for retention of the reflective loss principle in Australia, with commentary by the Hon Justice Angus Stewart, and chaired by Ruth Higgins SC.