Great North Eastern Railway Ltd. v Railcare Ltd. [2003] EWHC 1608 (Comm) (15 July 2003)

Great North Eastern Railway Ltd. v Railcare Ltd. [2003] EWHC 1608 (Comm) (15 July 2003)

The proper measure of lost revenue is the difference between actual and budget-based expected revenue for the affected periods, adjusted for proven extraneous factors and uplifted for demonstrated over-performance, with only those expenses directly attributable to Railcare's admitted negligence recoverable; broader remedial costs not caused by Railcare's breach are irrecoverable.

Citation
[2003] EWHC 1608 (Comm)
Parties
Claimant: Great North Eastern Railway Ltd; Defendant: Railcare Ltd
Jurisdiction
England and Wales
Judgment Date
15 July 2003
Procedural Posture
Commercial Court Claim for Damages in Tort (negligence) / Quantum Trial Following Admission of Liability
Outcome
Judgment for the claimant in part; damages awarded as specified.
Legal Topics
Negligence, Damages, Causation, Remoteness, Contributory Negligence
Tort Law Commercial Law Negligence Damages Causation Remoteness Contributory Negligence

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Parties

Great North Eastern Railway Ltd

Claimant

Railcare Ltd

Defendant

Procedural Posture

Commercial Court Claim for Damages in Tort (negligence) / Quantum Trial Following Admission of Liability

Legal Issues

  1. 1 Assessment of damages for lost revenue and expenses following admitted negligence
  2. 2 Appropriate methodology for calculating lost passenger revenue
  3. 3 Recoverability of consultancy and remedial expenses (causation and remoteness)

Ratio Decidendi

The proper measure of lost revenue is the difference between actual and budget-based expected revenue for the affected periods, adjusted for proven extraneous factors and uplifted for demonstrated over-performance, with only those expenses directly attributable to Railcare's admitted negligence recoverable; broader remedial costs not caused by Railcare's breach are irrecoverable.

Court Disposition

Judgment for the claimant in part; damages awarded as specified.

Orders

  • GNER awarded £1,904,000 for lost passenger revenue (after deductions)
  • GNER awarded £29,600 for lost catering revenue