Should employers expect to recoup the management costs of resolving a tort? Natalie Johnston investigates
Time is money, or so the saying goes. So what happens when a business’s employees have to divert a substantial amount of their time to the investigation or mitigation of a tort or breach of contract? Can the business recover the costs of the employees’ time?
R + V Versicherung AG v Risk Insurance and Reinsurance Solutions SA [2006] EWHC 42 (Comm), [2006] All ER (D) 209 (Jan) confirmed that a business can recover the cost of wasted staff time spent on the investigation or mitigation of a tort as a separate head of loss. The ability to recover will depend on whether or not the business can show with certainty that the expenditure relates to the investigation or mitigation. There is no need to show that there has been additional expenditure or loss of profits.
Bridge Communications
Bridge UK Com Ltd (t/a Bridge Communications) v Abbey Pynford plc [2007] EWHC 728 (TCC), [2007] All ER (D) 156 (Apr) shows how the court has applied these principles and
