Negligence and damage to tangible property

Armstead v Royal & Sun Alliance Insurance Company Ltd [2024] UKSC 6

In Armstead v Royal & Sun Alliance Insurance Company Ltd [2024] UKSC 6, the Supreme Court restated a number of core principles applicable to claims in the tort of negligence arising out of damage to tangible property. In particular, it was held that where physical damage is negligently caused to revenue-generating property, the loss recoverable by the owner of the property from the person who caused the damage includes a sum payable by the owner under an agreement with another party to compensate that party for its loss of revenue resulting from the damage, provided the sum agreed is a reasonable estimate of the likely amount of that loss.