Cases - Aerospace Publishing Ltd v Thames Water Utilities Ltd

Record details

Name

Aerospace Publishing Ltd v Thames Water Utilities Ltd

Date

[2007]

Citation

EWCA Civ 3

Legislation

Water Industry Act 1991

Keywords

Construction claim - loss and expense claim - damages - staff costs - written documentation - evidence - causation - loss of profit

Summary

In this case, a mains water pipe for which the defendant was responsible ruptured, leading to the flooding of the claimant's premises and to the damage of various rare publications archived therein. The defendant admitted liability, but the issue of quantum was appealed when the first instance judge failed to give adequate reasons for his assessment.

Amongst other items, it was considered whether the defendant was liable for the staff costs incurred by the claimant in relation to, and consequent on, the flood. Lord Justice Wilson identified the following propositions which applied where such costs were claimed:

'(a) The fact and, if so, the extent of the diversion of staff time have to be properly established and, if in that regard evidence which it would have been reasonable for the claimant to adduce is not adduced, he is at risk of a finding that they have not been established.

(b) The claimant also has to establish that the diversion caused significant disruption to its business.

(c) Even though it may well be that strictly the claim should be cast in terms of a loss of revenue attributable to he diversion of staff time, nevertheless in the ordinary case, and unless the defendant can establish the contrary, it is reasonable for the court to infer from the disruption that, had their time not been thus diverted, staff would have applied it to activities which would, directly or indirectly, have generated revenue for the claimant in an amount at least equal to the costs if employing them during that time.'