Bank Mellat v HM Treasury

Bank Mellat v HM Treasury

Bank Mellat cannot claim for PIB's loss of earnings before tax as a shareholder because PIB itself has standing as a victim to claim under the Human Rights Act and Strasbourg principles; only the company can claim for its own losses except in exceptional circumstances, which do not apply here.

Parties
Respondent: Bank Mellat; Appellant: HM Treasury
Jurisdiction
England and Wales
Judgment Date
10 May 2016
Procedural Posture
Civil Appeal / Appeal From Commercial Court, Preliminary Issues
Outcome
Appeal allowed in part; Bank Mellat's claim for PIB's loss struck out; issue of loss of future income left open for trial.
Legal Topics
Article 1 Protocol 1 ECHR, Shareholder Reflective Loss, Just Satisfaction Under Human Rights Act, Corporate Veil, Goodwill as Possession
Human Rights Company Law Administrative Law Article 1 Protocol 1 ECHR Shareholder Reflective Loss Just Satisfaction Under Human Rights Act Corporate Veil Goodwill as Possession

Case Brief

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Parties

Bank Mellat

Respondent

HM Treasury

Appellant

Procedural Posture

Civil Appeal / Appeal From Commercial Court, Preliminary Issues

Legal Issues

  1. 1 Whether Bank Mellat can claim 60% of PIB's loss of earnings before tax as a shareholder
  2. 2 Whether Bank Mellat can claim loss of future income as just satisfaction under Article 1 Protocol 1 ECHR

Ratio Decidendi

Bank Mellat cannot claim for PIB's loss of earnings before tax as a shareholder because PIB itself has standing as a victim to claim under the Human Rights Act and Strasbourg principles; only the company can claim for its own losses except in exceptional circumstances, which do not apply here.

Court Disposition

Appeal allowed in part; Bank Mellat's claim for PIB's loss struck out; issue of loss of future income left open for trial.

Orders

  • Bank Mellat's claim for 60% of PIB's loss of earnings before tax is struck out.
  • Trial judge to determine recoverability of loss of future income and other losses based on facts.