Reflective Loss And Strike Out / Summary Judgment: Burnford & Ors v Automobile Association Developments Ltd [2022] EWCA Civ 1943

• Published date: 13 December 2022
• Law Firm: Conyers
• Author: Mr Ben Mellett

The English Court of Appeal has confirmed that cases concerning reflective loss are suitable for strike out / summary judgment. The reflective loss principle has its origins in a principle of company law known as the rule in Foss v Harbottle, or the 'proper plaintiff' rule, i.e. the only person who can seek relief for an injury done to a company is the company itself.

The rule against reflective loss is a rule of substantive law (rather than procedural law) which provides that a shareholder cannot claim for losses it has suffered in its capacity as a shareholder (for example a diminution in share value or in distributions). Those are the losses of the company which the law does not regard as...