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ARTICLE · 24 JUNE 2024

What Losses Can I Claim In Litigation?

Stephens Scown
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The Supreme Court ruling in Armstead v Royal & Sun Alliance Insurance Company Limited [2024] UKSC 6 clarified that claimants can recover financial losses directly linked to damage caused by a defendant. The Court ruled such losses are not considered too remote, shifting the burden to defendants to prove otherwise. This decision emphasizes the importance of accurately assessing and justifying claimed losses in litigation.

United KingdomLitigation, Mediation & Arbitration
Gemma Mittell
Gemma Mittell

In a recent case that went all the way to the Supreme Court (Armstead v Royal & Sun Alliance Insurance Company Limited[2024] UKSC 6), the court looked back at some fundamental legal principles of what financial losses a claimant could claim from a defendant and what was considered too remote.

What losses can I claim in litigation?

This is an important issue as it can dramatically affect how much a claim is worth. Whilst it might be very clear that a defendant has breached their duty of care, if there is no loss, or the loss is minimal, it is often not proportionate for a claimant to pursue the claim.

Remoteness is a legal concept which is often the source of much disagreement between parties in litigation. In this case, the claimant was driving a hire car whilst her car was being repaired after an accident. She was in a further accident whilst driving the hire car and under the agreement she had with the hire car company, she was liable to pay them for the

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