Sugar Hut Group & Ors v A J Insurance [2014] EWHC 3352 (Comm) (20 October 2014)

Sugar Hut Group & Ors v A J Insurance [2014] EWHC 3352 (Comm) (20 October 2014)

Business interruption losses should be calculated by uplifting pre-fire turnover by 20% (not 27%), with a further 10% uplift for the Christmas period, and CPI thereafter until reopening. Post-reopening turnover and TOWIE effect are irrelevant to the loss period. Accountants' costs and loss of profits at other venues are not recoverable due to insufficient evidence of causation. Interest is awarded at 5% per annum simple from specified dates.

Citation
[2014] EWHC 3352 (Comm)
Parties
Claimant: Sugar Hut Group & Others; Defendant: A J Insurance
Jurisdiction
England and Wales
Judgment Date
20 October 2014
Procedural Posture
Commercial Court Claim for Professional Negligence and Damages / Judgment After Trial on Quantum
Outcome
Claimants entitled to recover business interruption losses as calculated per judgment, with interest at 5% p.a. simple from specified dates. Accountants' costs and loss of profits at other venues rejected.
Legal Topics
Business Interruption Insurance, Breach of Duty by Insurance Broker, Assessment of Damages, Interest on Damages
Insurance Law Professional Negligence Commercial Law Business Interruption Insurance Breach of Duty by Insurance Broker Assessment of Damages Interest on Damages

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Sugar Hut Group & Others

Claimant

A J Insurance

Defendant

Procedural Posture

Commercial Court Claim for Professional Negligence and Damages / Judgment After Trial on Quantum

Legal Issues

  1. 1 Proper assessment of business interruption losses following fire
  2. 2 Recoverability of accountants' costs under insurance policy
  3. 3 Attribution of loss of profits at other venues to the insured event

Ratio Decidendi

Business interruption losses should be calculated by uplifting pre-fire turnover by 20% (not 27%), with a further 10% uplift for the Christmas period, and CPI thereafter until reopening. Post-reopening turnover and TOWIE effect are irrelevant to the loss period. Accountants' costs and loss of profits at other venues are not recoverable due to insufficient evidence of causation. Interest is awarded at 5% per annum simple from specified dates.

Court Disposition

Claimants entitled to recover business interruption losses as calculated per judgment, with interest at 5% p.a. simple from specified dates. Accountants' costs and loss of profits at other venues rejected.

Orders

  • Parties to agree final figures for damages and interest in accordance with judgment.
  • Failing agreement, court will determine outstanding issues.