Business, Interrupted - How should losses be assessed?


In this article, Michael Axe looks at some of the arguments on quantum that can be put forward by both Claimants and Defendants in Business Interruption claims.

Business interruption claims can arise in a wide variety of situations, sometimes indirectly, such as where a defendant's actions damage the claimant's business reputation and popularity resulting in a loss of customers, and other times more directly, such as when a defendant's actions disrupt the claimant's business by, for example, causing the loss of vital equipment. Whatever the cause of the interruption to the claimant's business, it is likely that the issues to be considered when the parties are attempting to quantify the business interruption claim will be very similar.

In this article we look at potential arguments that can be put forward in favour of the Claimant (i.e. to potentially increase the value of the claim), arguments that can be put forward by the defendant (i.e. to potentially reduce the value of the claim), and issues issues which put the dispute into the correct wider context of the local, national or industry sector economy.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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