Breeze & Anor v The Chief Constable of Norfolk Constabulary (Reflective loss principle)

Breeze & Anor v The Chief Constable of Norfolk Constabulary (Reflective loss principle)

The Reflective Loss principle applies to bar the claimants' claims for loss of share value, as the company could have sued for the alleged loss. However, the claimants are granted an opportunity to amend their pleadings to properly invoke the Giles v Rhind exception, failing which the claims will be struck out.

Source-derived case information.

Parties
Claimant: Andrew Breeze; Claimant: Dominic Wilson; Defendant: The Chief Constable of Norfolk Constabulary
Jurisdiction
England and Wales
Judgment Date
15 March 2018
Procedural Posture
Civil / Interlocutory Application for Strike Out And/or Summary Judgment
Outcome
Conditional strike out unless claimants amend pleadings to properly plead Giles v Rhind exception.
Legal Topics
Reflective Loss Principle, Shareholder Claims, Malicious Prosecution, Misfeasance in Public Office, Amendment of Pleadings, Strike Out Applications
Tort Law Company Law Civil Procedure Reflective Loss Principle Shareholder Claims Malicious Prosecution Misfeasance in Public Office Amendment of Pleadings +1 more

Source-derived case record

Summary, issues, holding and outcome

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Parties

Andrew Breeze

Claimant

Dominic Wilson

Claimant

The Chief Constable of Norfolk Constabulary

Defendant

Procedural Posture

Civil / Interlocutory Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether the claimants' claims for loss of share value are barred by the Reflective Loss principle
  2. 2 Whether the company could have sued for the alleged loss
  3. 3 Whether the Giles v Rhind exception applies to permit shareholder claims where the company is prevented from suing

Ratio Decidendi

The Reflective Loss principle applies to bar the claimants' claims for loss of share value, as the company could have sued for the alleged loss. However, the claimants are granted an opportunity to amend their pleadings to properly invoke the Giles v Rhind exception, failing which the claims will be struck out.

Court Disposition

Conditional strike out unless claimants amend pleadings to properly plead Giles v Rhind exception.

Orders

  • Unless by a date to be determined the claimants apply to amend their Particulars of Claim to plead reliance on Giles v Rhind and appropriate factual averments, the claims for loss of share value shall be struck out.
  • Claimants to pay defendant's costs of the application.