Jurisdiction(s):
United Kingdom

Commercial Court grants defendant summary judgment on damages quantification; net loss approach requires credit for intra‑group costs (CPR 24.2 ‘particular issue’) in Palmali v Litasco (England and Wales)

Published on: 06 October 2020

Published by a LexisNexis Dispute Resolution expert

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Article summary

Palmali Shipping SA v Litasco SA [2020] EWHC 2581 (Comm)

What are the practical implications of this case?

This judgment carries two key consequences. First, Foxton J determined that the court can grant summary judgment, on the pleaded approach, for the quantification of damages in a breach of contract, even where the defendant is unable to show that no damages are recoverable at all. A dispute over the proper methodology for assessing loss amounts to a ‘particular issue’ within CPR 24.2. Second, the court considered the so‑called ‘net loss approach’ to damages. Where a claimant bears a legal obligation to third‑party companies for costs incurred in performing the contract, those expenditures must be credited when arriving at the net loss claimed against the defendant, even if those third‑party companies have the same beneficial owner as the claimant and even if, in practice, such companies did not ordinarily insist on payment...

What was the background?

Palmali...

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