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ARTICLE · 16 JUNE 2011

Economic Loss Actions Still On Track

The law is the embodiment of common sense: or, at any rate, it should be. So said Lord Denning in S.C.M (United Kingdom) Ltd v. W.J. Whittall and Son Limited in 1970.

United KingdomReal Estate and Construction
David Arnott
David Arnott
Chris Duff
Chris Duff
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The law is the embodiment of common sense: or, at any rate, it should be. So said Lord Denning in S.C.M (United Kingdom) Ltd v. W.J. Whittall and Son Limited in 1970. A recent Court of Appeal decision in England has revisited the S.C.M case together with a myriad of other cases in connection with the extent of a person's duty of care in tort (delict in Scotland) and the limits on recoverability.

Facts

The case, Conarken Group Limited and Farrell Transport Limited v. Network Rail Infrastructure Limited, concerned two instances of negligent driving. In each instance Network Rail infrastructure was damaged and temporarily put out of use. As a result, certain train operating companies (TOC's) were also temporarily unable to operate their trains on the parts of the rail system affected. There were sophisticated agreements in place between the TOC's and Network Rail to regulate the use by the TOC's of the Network Rail infrastructure, under which Network Rail

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