Network Rail Infrastructure Ltd v Conarken Group Ltd [2010] EWHC 1852 (TCC) (21 July 2010)

Network Rail Infrastructure Ltd v Conarken Group Ltd [2010] EWHC 1852 (TCC) (21 July 2010)

Schedule 8 losses paid by Network Rail to TOCs are recoverable as damages from the negligent parties because they are consequential upon the physical damage to the railway infrastructure and the necessary remedial works. Such losses are not pure economic loss but are sufficiently closely associated with the physical...

Source-derived case information.

Citation
[2010] EWHC 1852 (TCC)
Parties
Claimant: Network Rail Infrastructure Limited; Defendant: Conarken Group Limited; Defendant: Farrell Transport Limited
Jurisdiction
England and Wales
Judgment Date
21 July 2010
Procedural Posture
Tort/negligence—damages / High Court—judgment After Trial
Outcome
Claim allowed in respect of Schedule 8 losses; damages awarded to Network Rail.
Legal Topics
Negligence, Economic Loss, Consequential Damages, Duty of Care, Remoteness, Railway Infrastructure, Nuisance, Trespass
Tort Law Contract Law Negligence Economic Loss Consequential Damages Duty of Care Remoteness Railway Infrastructure +2 more

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Parties

Network Rail Infrastructure Limited

Claimant

Conarken Group Limited

Defendant

Farrell Transport Limited

Defendant

Procedural Posture

Tort/negligence—damages / High Court—judgment After Trial

Legal Issues

  1. 1 Are Schedule 8 losses paid by Network Rail to Train Operating Companies (TOCs) following negligent damage to railway infrastructure recoverable as damages from the negligent parties?
  2. 2 Do such losses constitute pure economic loss or are they consequential upon physical damage?
  3. 3 Are the losses too remote or not reasonably foreseeable?

Ratio Decidendi

Schedule 8 losses paid by Network Rail to TOCs are recoverable as damages from the negligent parties because they are consequential upon the physical damage to the railway infrastructure and the necessary remedial works. Such losses are not pure economic loss but are sufficiently closely associated with the physical damage, foreseeable, and not too remote. The contractual mechanism by which Network Rail compensates TOCs does not break the chain of causation or render the losses irrecoverable. The same measure of damages applies whether liability is established in negligence, nuisance, or trespass.

Court Disposition

Claim allowed in respect of Schedule 8 losses; damages awarded to Network Rail.

Orders

  • Defendants to pay Network Rail the agreed Schedule 8 sums for each incident.
  • Defendants to pay costs of repairs already admitted and paid.