We predict a riot — consequential losses can be recovered from the police

By Jonathan Smart

The Court of Appeal has ruled that business interruption and other consequential losses can now be recovered from the police after London riots.

The Riot (Damages) Act 1886 has always allowed claims for physical damage. However, following the London riots there have been further attempts by local businesses and their insurers to claim consequential losses such as loss of profit and loss of rent following the damage or destruction to local businesses.

In September 2013, the High Court held that parties could only claim direct losses from the police (such as claims for physical damage to property) and could not recover any consequential losses. The Court of Appeal has overturned the High Court decision…

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