In Primeo v Bank of Bermuda1The Privy Council has handed down an important decision concerning the reflective loss rule, which clarifies two points left open in the Supreme Court’s judgment in Sevilleja v Marex Financial Ltd  UKSC 31 (the “Marex decision“).
The “Reflective Loss Rule”
You can read more about the reflective loss rule, and the Marex decision, in our previous article here. The key message from the Marex decision is that the rule against reflective loss is a narrow one. It only applies to claims: i) by shareholders (not, for example former shareholders or non-shareholder creditors); ii) for losses (in the form of a diminution in share value or in distributions) suffered in their capacity as shareholders; and iii) caused by a loss sustained by the company, which must also have a cause of action against the same wrongdoer (whether it chooses to pursue its claim or not).
However, since the Supreme Court’s decision,…