Privy Council hands down judgment in Primeo v Bank of Bermuda

The judgment addresses two important points on the reflective loss principle which were left open by the Supreme Court’s judgment in Sevilleja v Marex [2021] AC 39.  First, overruling the English Court of Appeal’s decision in Nectrus Ltd v UCP Plc [2021] EWCA Civ 57, the Privy Council held that the relevant time for determining whether a loss is reflective is the point at which the loss is suffered, not when the claim is made.  Secondly, the Privy Council held that the reflective loss principle will not bar a claim unless the shareholder and the company have a claim against the same wrongdoer.  It is not enough that the defendant to the shareholder’s claim may be able to pass on his liability to the defendant to the company’s claim.  Tom Smith QC, Richard Fisher QC and Robert Amey appeared for Primeo.  William Willson and Toby Brown appeared for the Bank of Bermuda.