Collins Stewart Ltd. and Anor v The Financial Times Ltd.

Collins Stewart Ltd. and Anor v The Financial Times Ltd.

Claims for special damages based on the fall in market capitalisation of Plc shares are not legally sustainable as they represent reflective loss not suffered by the Claimants, are too uncertain, and do not constitute recoverable pecuniary loss. Such claims are struck out. All issues relating to damages (general and special) require prolonged examination of documents and accounts and are to be tried by judge alone, not jury.

Parties
Claimant: Collins Stewart Ltd; Claimant: Collins Stewart Tullett Plc; Defendant: The Financial Times Ltd
Jurisdiction
England and Wales
Judgment Date
20 October 2004
Procedural Posture
Civil / Ruling on Strike Out Application and Mode of Trial
Outcome
Application to strike out paragraphs 3-6 of Particulars of Special Damage granted; mode of trial varied.
Legal Topics
Libel, Special Damages, Reflective Loss, Market Capitalisation, Trial by Jury, Assessment of Damages
Defamation Company Law Damages Libel Special Damages Reflective Loss Market Capitalisation Trial by Jury +1 more

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Parties

Collins Stewart Ltd

Claimant

Collins Stewart Tullett Plc

Claimant

The Financial Times Ltd

Defendant

Procedural Posture

Civil / Ruling on Strike Out Application and Mode of Trial

Legal Issues

  1. 1 Whether paragraphs 3-6 of the Claimants' Particulars of Special Damage should be struck out for disclosing no reasonable grounds for special damages based on market capitalisation
  2. 2 Whether all issues relating to damages (general and special) should be tried by judge alone rather than jury
  3. 3 Whether the reflective loss principle bars the claims for special damages based on share price movements

Ratio Decidendi

Claims for special damages based on the fall in market capitalisation of Plc shares are not legally sustainable as they represent reflective loss not suffered by the Claimants, are too uncertain, and do not constitute recoverable pecuniary loss. Such claims are struck out. All issues relating to damages (general and special) require prolonged examination of documents and accounts and are to be tried by judge alone, not jury.

Court Disposition

Application to strike out paragraphs 3-6 of Particulars of Special Damage granted; mode of trial varied.

Orders

  • Paragraphs 3-6 of the Claimants' Particulars of Special Damage dated 29 March 2004 are struck out.
  • Order for split trial varied: liability to be tried first by judge and jury; all issues of damages to be tried thereafter by judge alone.