UCP Plc v Nectrus Ltd

UCP Plc v Nectrus Ltd

UCP's claim is not barred by the reflective loss principle because it was not a shareholder at the time the claim was made; the loss suffered is direct and not reflective. Legal costs incurred in mitigation are recoverable as reasonable expenses. Equitable set-off is permitted for distributions and Manx Court costs against the judgment debt.

Parties
Claimant: UCP PLC; Defendant: Nectrus Limited
Jurisdiction
England and Wales
Judgment Date
29 November 2019
Procedural Posture
Commercial Claim / Quantum Assessment After Liability Judgment
Outcome
Judgment for UCP PLC against Nectrus Limited
Legal Topics
Reflective Loss, Breach of Investment Management Agreement, Mitigation of Loss, Recovery of Legal Costs, Set Off

Case Brief

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Parties

UCP PLC

Claimant

Nectrus Limited

Defendant

Procedural Posture

Commercial Claim / Quantum Assessment After Liability Judgment

  1. 1 Whether UCP's claim is barred by the reflective loss principle
  2. 2 Quantum of loss suffered by UCP due to Nectrus's breach
  3. 3 Recoverability of legal costs incurred in mitigation

Ratio Decidendi

UCP's claim is not barred by the reflective loss principle because it was not a shareholder at the time the claim was made; the loss suffered is direct and not reflective. Legal costs incurred in mitigation are recoverable as reasonable expenses. Equitable set-off is permitted for distributions and Manx Court costs against the judgment debt.

Court Disposition

Judgment for UCP PLC against Nectrus Limited

Orders

  • Nectrus to pay UCP £5,837,920.37 for Lost Deposits
  • Nectrus to pay UCP £1,934,989 for recovery legal costs