Grant v Ralls [2016] BCC 293

Court: High Court

Facts: Liquidators sought to hold directors liable for wrongful trading, arguing that loss should be calculated based on the impact of continued trading.

Issue: How should loss be calculated in wrongful trading claims, and can directors be held liable if there is insufficient evidence that continued trading worsened creditors' losses?

Held: Claim partially upheld. The court agreed with the directors’ definition of loss but found insufficient evidence that continued trading exacerbated creditors' losses.

Key Judicial Statement: The court stated, "Loss in wrongful trading claims should be assessed based on the impact of continued trading on the company’s financial position."

💡 Leveluplaw: Loss in wrongful trading claims should be based on the impact of continued trading, and evidence must show that continued trading directly worsened the creditors' position.