In Sevilleja v Marex Financial Ltd [2020] UKSC
31 (15 July 2020), the UK Supreme Court unanimously confirmed that
the rule barring recovery of "reflective loss"
does not and cannot apply to creditor claims.
Marex Financial Ltd ("Marex"), a
creditor of two companies incorporated in the British Virgin
Islands (the "BVI companies"), had
brought a claim against Mr Sevilleja alleging that he had caused
loss to the BVI companies, thereby preventing the BVI companies
from satisfying a judgment debt in favour of Marex. Mr Sevilleja
sought to argue that Marex's loss was merely reflective of the
loss sustained by the BVI companies, and that Marex's claim was
therefore unsustainable by reason of the rule barring recovery of
such loss. The UK Supreme Court rejected Mr Sevilleja's
argument, thereby allowing Marex's claim to proceed.
