Aerospace Publishing Ltd & Anor v Thames Water Utilities Ltd [2007] EWCA Civ 3 (11 January 2007)

Aerospace Publishing Ltd & Anor v Thames Water Utilities Ltd [2007] EWCA Civ 3 (11 January 2007)

Where a unique archive is damaged and the claimant intends to reinstate it, and such reinstatement is reasonable, damages should be assessed on the cost of reinstatement rather than mere diminution in value, even if market value is difficult to ascertain. The claimants' intention to reinstate and the archive's centrality to their business justified awarding reinstatement costs.

Citation
[2007] EWCA Civ 3
Parties
Respondents/claimants: Aerospace Publishing Ltd & anr; Appellants/defendants: Thames Water Utilities Ltd
Jurisdiction
England and Wales
Judgment Date
11 January 2007
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Quantum Following High Court Trial
Outcome
Appeal dismissed; judgment for claimants affirmed on reinstatement basis.
Legal Topics
Measure of Damages, Reinstatement Vs Diminution in Value, Loss of Profit, Destruction of Unique Property, Reasonableness of Reinstatement, Mitigation of Loss
Tort Law Damages Property Law Measure of Damages Reinstatement Vs Diminution in Value Loss of Profit Destruction of Unique Property Reasonableness of Reinstatement +1 more

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Parties

Aerospace Publishing Ltd & anr

Respondents/claimants

Thames Water Utilities Ltd

Appellants/defendants

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Quantum Following High Court Trial

Legal Issues

  1. 1 How should damages be assessed for the destruction or damage of a unique private archive: by cost of reinstatement or by diminution in value?
  2. 2 Was it reasonable for the claimants to seek reinstatement of the archive?
  3. 3 Did the claimants intend to reinstate the archive?

Ratio Decidendi

Where a unique archive is damaged and the claimant intends to reinstate it, and such reinstatement is reasonable, damages should be assessed on the cost of reinstatement rather than mere diminution in value, even if market value is difficult to ascertain. The claimants' intention to reinstate and the archive's centrality to their business justified awarding reinstatement costs.

Court Disposition

Appeal dismissed; judgment for claimants affirmed on reinstatement basis.

Orders

  • Damages to be assessed on the cost of reinstatement, not diminution in value.
  • Claimants entitled to £2,693,413 for reinstatement loss (including delay in profit realisation).