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17th June 2015

Don't write off lost profits

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If someone negligently damages your property, can you claim against him for losses you incur by not being able to use that property in your business as a result?

A recent case involving damage to property belonging to Network Rail by negligent motor vehicle drivers has confirmed that you can.

Lost profits can be claimed in negligence even where the damage to property consists of substances or physical things being deposited on the property which prevent the property being used or enjoyed.

For claims in trespass, overall, loss of revenue can be recovered for trespass to land, even when there is no physical damage or even fouling of the land.

The court will not assess whether the amount claimed is reasonable as between the claimant and the defendant, but compensation will only be that allowed by the rules of law that limit damages to losses that result from and are not too remote from the wrong done.

See our Disputes and Litigation services page for more information or click here to email Stephen.