Sugar Hut Group & Ors v A J Insurance

Sugar Hut Group & Ors v A J Insurance

Lost turnover should be assessed by reference to pre-fire trading trends, uplifted by 20% for the relevant period, with a reduced uplift for holiday periods and CPI thereafter; post-reopening turnover and the 'TOWIE effect' are too speculative to use. Gross profit rate set at 75.8%. Accountants' costs, alternative accommodation, redundancy, and losses at other venues not recoverable due to insufficient evidence of causation or policy requirement. Interest awarded at 5% simple from specified dates. No deduction for depreciation due to lack of pleaded case or evidence.

Parties
Claimant: Sugar Hut Group & Others; Defendant: A J Insurance
Jurisdiction
England and Wales
Judgment Date
20 October 2014
Procedural Posture
Commercial Court Claim (insurance Negligence) / Judgment After Quantum Trial (liability Admitted by Consent)
Outcome
Claim allowed in part
Legal Topics
Business Interruption Loss, Calculation of Damages, Interest on Damages, Accountants' Costs, Causation, Contributory Negligence
Insurance Law Professional Negligence Contract Law Business Interruption Loss Calculation of Damages Interest on Damages Accountants' Costs Causation +1 more

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Parties

Sugar Hut Group & Others

Claimant

A J Insurance

Defendant

Procedural Posture

Commercial Court Claim (insurance Negligence) / Judgment After Quantum Trial (liability Admitted by Consent)

Legal Issues

  1. 1 Proper assessment of business interruption losses following fire
  2. 2 Appropriate calculation of lost turnover and gross profit
  3. 3 Recoverability of accountants' costs under policy

Ratio Decidendi

Lost turnover should be assessed by reference to pre-fire trading trends, uplifted by 20% for the relevant period, with a reduced uplift for holiday periods and CPI thereafter; post-reopening turnover and the 'TOWIE effect' are too speculative to use. Gross profit rate set at 75.8%. Accountants' costs, alternative accommodation, redundancy, and losses at other venues not recoverable due to insufficient evidence of causation or policy requirement. Interest awarded at 5% simple from specified dates. No deduction for depreciation due to lack of pleaded case or evidence.

Court Disposition

Claim allowed in part

Orders

  • Claimants to recover net amounts calculated per judgment, with interest at 5% simple from specified dates until final order.
  • Counsel to agree figures and consequential matters; failing agreement, court to resolve outstanding issues.