Hsbc Rail (UK) Ltd. v Network Rail Infrastructure Ltd. (Formerly Railtrack Plc)

Hsbc Rail (UK) Ltd. v Network Rail Infrastructure Ltd. (Formerly Railtrack Plc)

A bailor/lessor without possession or immediate right to possession, whose reversionary interest has not suffered permanent damage because the bailee has repaired or compensated for the goods, cannot recover damages from a tortfeasor in negligence. Where the owner has been made whole by the bailee or insurance, there is no loss to recover.

Parties
Appellant: HSBC Rail (UK) Ltd; Respondent: Network Rail Infrastructure Ltd (formerly Railtrack Plc)
Jurisdiction
England and Wales
Judgment Date
25 November 2005
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Negligence, Reversionary Interest, Damages, Bailment, Insurance Indemnity
Tort Law Property Law Insurance Law Negligence Reversionary Interest Damages Bailment Insurance Indemnity

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Parties

HSBC Rail (UK) Ltd

Appellant

Network Rail Infrastructure Ltd (formerly Railtrack Plc)

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court) to Court of Appeal

Legal Issues

  1. 1 Whether a bailor/lessor without possession or immediate right to possession can recover damages for loss or damage to leased goods when compensated by the bailee or insurance
  2. 2 Whether permanent damage to the chattel or to the reversionary interest is required for such recovery
  3. 3 Whether insurance payments to the owner should be disregarded in assessing damages

Ratio Decidendi

A bailor/lessor without possession or immediate right to possession, whose reversionary interest has not suffered permanent damage because the bailee has repaired or compensated for the goods, cannot recover damages from a tortfeasor in negligence. Where the owner has been made whole by the bailee or insurance, there is no loss to recover.

Court Disposition

Appeal dismissed

Orders

  • Claim by HSBC dismissed; no damages recoverable from Network Rail