Webster v Sandersons Solicitors (A Firm)

Webster v Sandersons Solicitors (A Firm)

The claimant cannot recover losses suffered by his company or pension fund in his personal claim, as such losses are not his to recover and are barred by the reflective loss principle and trust law. The Giles v Rhind exception does not apply because neither the company nor the pension fund was prevented from suing by the defendants' wrongdoing. The only recoverable losses are those suffered personally by the claimant and his claim for lost income due to loss of employment, subject to remoteness.

Parties
Claimant/respondent: Charles Frederick Webster; Defendants/appellants: Sandersons Solicitors (A Firm)
Jurisdiction
England and Wales
Judgment Date
31 July 2009
Procedural Posture
Civil Appeal / Appeal From High Court Order on Permission to Amend Particulars of Claim and Schedule of Loss
Outcome
Appeal allowed in part
Legal Topics
Reflective Loss, Shareholder Claims, Trustee Claims, Amendment of Pleadings, Limitation, Loss of Chance, Derivative Actions
Company Law Trust Law Professional Negligence Reflective Loss Shareholder Claims Trustee Claims Amendment of Pleadings Limitation +2 more

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Parties

Charles Frederick Webster

Claimant/respondent

Sandersons Solicitors (A Firm)

Defendants/appellants

Procedural Posture

Civil Appeal / Appeal From High Court Order on Permission to Amend Particulars of Claim and Schedule of Loss

Legal Issues

  1. 1 Whether the claimant can recover losses suffered by his company or pension fund in his personal claim against solicitors for professional negligence
  2. 2 Whether the exception in Giles v Rhind applies to allow recovery of reflective loss
  3. 3 Whether the claimant can recover for diminution in pension fund value or company losses as personal loss

Ratio Decidendi

The claimant cannot recover losses suffered by his company or pension fund in his personal claim, as such losses are not his to recover and are barred by the reflective loss principle and trust law. The Giles v Rhind exception does not apply because neither the company nor the pension fund was prevented from suing by the defendants' wrongdoing. The only recoverable losses are those suffered personally by the claimant and his claim for lost income due to loss of employment, subject to remoteness.

Court Disposition

Appeal allowed in part

Orders

  • Permission to amend particulars of claim and schedule of loss limited to items of personal loss (category i) and claim for lost income (category iv)
  • Amendments to include company and pension fund losses disallowed