bto solicitors - Corporate & Commercial Business Lawyers Glasgow Edinburgh Scotland

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Riot Damage and Consequential Losses

30 May 2014

bto’s team of Jonathan Lake QC and Tony Jones WS, Partner and Solicitor Advocate, were successful this week in arguing that a body exercising public sector duties was entitled to recover compensation for damage caused during a riot.

The decision comes less than a week after the Court of Appeal in England & Wales ruled that not only could parties claim for damage caused to property, but for consequential losses too, such as loss of profits (see Mitsui Sumitomo Insurance Co Ltd and others v Tokio Marine Insurance Ltd & others April 2014). In Mitsui the Court of Appeal noted that the Cora Foundation case was the first in the UK in which the issue of consequential losses was argued. In Cora the Judge at first instance decided that consequential losses could not be claimed under the Scottish Legislation from 1822. However, in Mitsui the Court of Appeal considered that the English Legislation from 1886 did allow claims for consequential losses.

The net result of these two recent decisions is that there is now a clear difference between the law as it is in Scotland and that in England & Wales.

Scottish businesses cannot seek to recover lost revenue or profits under the Legislation, but their English & Welsh counterparts can. The question arises, now that this difference has been highlighted - Will Westminster or Holyrood act to change the law?

For further details, see: “Council Fails in Appeal to have Compensation Claim Over School Riot Dismissed”, Scottish Legal New.

Contact: Tony Jones

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