Vol 16 (2019) - Issue 2

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Carlos Sevilleja Garcia v Marex Financial Limited [2018] EWCA Civ 1468

Synopsis

In Sevilleja Garcia v Marex Financial Limited [2018] EWCA Civ 1468, the Court of Appeal considered the scope of the rule against reflective loss, concluding unambiguously that the rule extends to preventing claims brought by creditors of a company, and is not limited to claims brought by shareholders. Further, the Court clarified the extremely limited nature of the exception to the rule, namely that an exception will be recognised only where the conduct of the wrongdoing defendant has made it legally impossible for the company, or another acting on its behalf, to bring the claim.