Network Rail Infrastructure Ltd v Conarken Group Ltd

Network Rail Infrastructure Ltd v Conarken Group Ltd

Schedule 8 losses paid or allowed by Network Rail to TOCs as a result of the defendants' negligence are recoverable as damages because they are demonstrably consequential upon and closely associated with the physical damage to Network Rail's property and the necessary remedial works. The losses are not too remote, are reasonably foreseeable, and fall within the scope of the duty of care owed by the defendants. The contractual mechanism for quantifying the loss does not alter its recoverability. There is no material difference in the measure of damages whether the claim is framed in negligence, trespass, or nuisance.

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
Civil / Judgment After Trial
Outcome
Judgment for the claimant (Network Rail) against both defendants.
Legal Topics
Negligence, Economic Loss, Trespass, Nuisance, Damages, Remoteness, Duty of Care
Tort Law Contract Law Negligence Economic Loss Trespass Nuisance Damages Remoteness +1 more

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Parties

Network Rail Infrastructure Limited

Claimant

Conarken Group Limited

Defendant

Farrell Transport Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Are Schedule 8 losses paid by Network Rail to Train Operating Companies (TOCs) recoverable as damages from the negligent defendants?
  2. 2 Do these 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 or allowed by Network Rail to TOCs as a result of the defendants' negligence are recoverable as damages because they are demonstrably consequential upon and closely associated with the physical damage to Network Rail's property and the necessary remedial works. The losses are not too remote, are reasonably foreseeable, and fall within the scope of the duty of care owed by the defendants. The contractual mechanism for quantifying the loss does not alter its recoverability. There is no material difference in the measure of damages whether the claim is framed in negligence, trespass, or nuisance.

Court Disposition

Judgment for the claimant (Network Rail) against both defendants.

Orders

  • Conarken Group Limited to pay Network Rail £293,742.32 (comprising £127,070.62 Schedule 8 losses and £166,661.70 remedial works).
  • Farrell Transport Limited to pay Network Rail £1,017,144.66 (Schedule 8 losses).