‘Reflecting on Sevilleja v Marex Financial

“Assume that a person (P) has a claim against another (D) for a loss suffered as a result of a breach of duty owed by D to P. Assume further that a company (Co) has a claim against D for loss suffered by Co as a result of a breach of separate duty owed by D to Co. Assume, finally, that the losses suffered by P and Co overlap, wholly or in part, and that P is a shareholder or creditor of Co. Before the decision of the Supreme Court in Sevilleja v Marex Financial Ltd ([2020] UKSC 31), it was arguable that British law contained a rule which excluded P from recovering from D the amount of the overlapping loss. This was a strong rule. It did not state that Co’s claim in relation to the overlapping loss merely had priority. P was excluded from recovery even if the company did nothing to recover the loss (subject to one exception) …” (more)

[Paul Davies QC, Oxford Business Law Blog, 5 August]

Leave a Reply