Conarken Group Ltd & Anor v Network Rail Infrastructure Ltd (Rev 1)

Conarken Group Ltd & Anor v Network Rail Infrastructure Ltd (Rev 1)

Network Rail is entitled to recover from the appellants the Schedule 8 payments made to TOCs as damages for economic loss directly consequent upon physical damage to its property caused by the appellants' negligence. Such losses, including those calculated by reference to marginal revenue effect and societal rate, are not too remote and were reasonably foreseeable. The contractual arrangements between Network Rail and the TOCs do not, by themselves, extend or limit the appellants' liability, but the losses claimed fall within established principles of recoverable consequential economic loss in tort.

Parties
Appellant: Conarken Group Limited; Appellant: Farrell Transport Limited; Respondent: Network Rail Infrastructure Limited
Jurisdiction
England and Wales
Judgment Date
27 May 2011
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From Queen's Bench Division, Technology and Construction Court
Outcome
Appeal dismissed
Legal Topics
Negligence, Economic Loss, Remoteness of Damage, Damages, Liability for Consequential Loss, Foreseeability, Duty of Care
Tort Law Contract Law Negligence Economic Loss Remoteness of Damage Damages Liability for Consequential Loss Foreseeability +1 more

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Parties

Conarken Group Limited

Appellant

Farrell Transport Limited

Appellant

Network Rail Infrastructure Limited

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From Queen's Bench Division, Technology and Construction Court

Legal Issues

  1. 1 Whether Network Rail can recover from the appellants damages for economic loss (Schedule 8 payments to TOCs) consequent upon physical damage to its property caused by the appellants' negligence.
  2. 2 Whether such losses are too remote or not reasonably foreseeable to be recoverable in tort.

Ratio Decidendi

Network Rail is entitled to recover from the appellants the Schedule 8 payments made to TOCs as damages for economic loss directly consequent upon physical damage to its property caused by the appellants' negligence. Such losses, including those calculated by reference to marginal revenue effect and societal rate, are not too remote and were reasonably foreseeable. The contractual arrangements between Network Rail and the TOCs do not, by themselves, extend or limit the appellants' liability, but the losses claimed fall within established principles of recoverable consequential economic loss in tort.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed. The judgment of the Technology and Construction Court awarding damages to Network Rail Infrastructure Limited is upheld.