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In the second kind of case, the arguments which arose in the case of a shareholder had no application.
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Where the risk of double recovery arose, how it should be avoided would depend on the circumstances.
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Harbottle is that a similar problem arises in relation to the rule which excludes P from recovering for overlapping losses, even where the company has made no effort to recover its loss and it is not clear that it ever will.
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The case has provided much needed clarity on the scope of reflective loss, although given the minority judgment there may be scope in the future for a brave shareholder to overturn the reflective loss principle in its entirety.
Usman Roohani explains the judgment and the effect on the rule on reflective loss.
Establishing conclusively the supreme court of co v newman industries
Marex brought proceedings against Mr Sevilleja in the High Court.
The judgment discussed in detail whether this principle should remain in place for claims by shareholders.
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The Court of Appeal found in favour of Sevilleja and found that not only did the principle of reflective loss apply to shareholders, but also to creditors, even if creditors were not a shareholder.
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- DealersOne of the issues for the House of Lords was whether some of the losses were barred by the rule against reflective loss.
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