BL-2025-000377 - [2025] EWHC 2976 (Ch)

The Defendants’ case is that this is a paradigm example of where the rule against the recovery of reflective loss must apply with the consequence that a shareholder, such as Mr Dekel, cannot recover the damages of the kind that he seeks to recover by way of the present proceedings because the loss that he seeks to recover damages in respect of is reflective of the loss suffered by CLL BVI if, contrary to the Defendants’ primary case, a claim for breach of the Management Agreement exists.

Before considering the basis upon which the rule is said to apply in the circumstances of the present case, and the reasons advanced on behalf of Mr Dekel as to why it is said to have no application in the circumstances of the present case, it is necessary to consider the basis for the rule itself.