“In Miao Weiguo v Tendcare Medical Group Holdings Pte Ltd [2021] SGCA 116, the Singapore Court of Appeal (SGCA) had recent occasion to examine the scope of the reflective loss principle, a principle that restricts recovery by A from B of a loss that duplicates parallel loss caused by B to a company C for which C could have sued. This principle has engendered controversy, for it bars A from bringing an otherwise valid personal claim simply because B ’s act which gives rise to the personal wrong also constitutes a corporate wrong. Notwithstanding, the principle has erstwhile been extended to bar recovery of claims brought by employees and creditors (see eg, Johnson v Gore Wood and Co [2002] 2 AC 1; [2001] 1 All ER 481; and Gardner v Parker [2004] EWCA Civ 781; [2004] 2 BCLC 554). All this ended in the UK for now when the Supreme Court released its seminal decision in Marex Financial Ltd v Sevilleja [2020] UKSC 31; [2021] AC 39 …”
€ (Westlaw)
Huai Yuan Chia ‘Rethinking the reflective loss principle’ (2022) 138 Law Quarterly Review (July) 342-348.
First posted 2022-06-04 12:30:46
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