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Case details

Sevilleja (Respondent) v Marex Financial Ltd (Appellant)

Case ID: UKSC 2018/0178

Case summary


Whether the rule against reflective loss bars creditors of a company from claiming directly against a third party for asset-stripping the company.


Marex accuses Mr Sevilleja of asset-stripping two companies so that they were unable to pay their judgment debt to Marex, by transferring money from their bank accounts in this jurisdiction into his personal control. Marex says that in doing so, Mr Sevilleja, who is not resident in this jurisdiction, committed a tort. On this basis, it obtained permission to serve proceedings on him out of the jurisdiction. Mr Sevilleja challenged the validity of service, and the court’s jurisdiction. He says that the rule against reflective loss bars Marex from showing a completed cause of action in tort. The rule bars a party who has suffered loss through a reduction in value of their interest in a company from claiming directly against the person who caused the loss to the company, rather than letting the company make the claim. This appeal raises the question of how far the rule applies to creditors.

Judgment appealed

[2018] EWCA Civ 1468



Marex Financial Ltd


Carlos Sevilleja Garcia (‘Mr Sevilleja’)


All Party Parliamentary Group on Fair Business Banking



Lady Hale, Lord Reed, Lord Hodge, Lady Black, Lord Lloyd-Jones, Lord Kitchin, Lord Sales

Hearing start date

08 May 2019

Hearing finish date

08 May 2019

Watch hearing
08 May 2019 Morning session Afternoon session

Judgment details

Judgment date

15 Jul 2020

Neutral citation

[2020] UKSC 31

Watch Judgment summary
15 Jul 2020 Judgment summary