LIABILITY FOR ‘DEMONSTRABLY CONSEQUENTIAL’ LOSSES

In Network Rail Infrastructure Ltd v Conarken Group Ltd [2010] EWHC 1852 (TCC), [2010] All ER (D) 237 (Jul) Mr Justice Akenhead held that, in negligence cases which involve physical damage to property owned by a claimant, loss of use, loss of profit or loss of revenue can be recovered as damages, subject to causation being established and provided that it is demonstrably consequential upon the physical damage in question and closely associated with the physical damage and the work done to repair or replace the damaged property. The fact that the loss of use, profit or revenue arises because a contract between the claimant and a third party makes the claimant liable to pay or allow it to the third party does not stop it from being recoverable.