Metropolitan Police Limited To Compensation Costs After Supreme Ruling

Lawyers at national law firm Irwin Mitchell warn that today’s Supreme Court ruling on compensation following the London Riots will not be welcomed by insurance companies, but millions of taxpayers’ money is likely to be saved.

Damage to buildings, alongside profit and rent loss during the London riots in August 2011 has caused a number of insurance companies and London Mayor Boris Johnson to be in dispute over compensation under the "Recovery of consequential losses under the Riot (Damages) Act of 1886.”

However, today five Supreme Court justices ruled in favour of Boris Johnson and concluded that the mayor’s office, which funds the Metropolitan Police, is limited to the costs of repairing the damage done to property during the riots, but  does not extend to  consequential losses such as lost rent or profits that result from riot damage.

It is estimated that today's Supreme Court decision will likely save the UK taxpayer upwards of £80m because many claims for consequential loss have been dependent on the outcome of this.

Furthermore, an on-going review of the Riot (Damages) Act 1886 by the Home Office is likely to result in changes that will affect compensation claims of this nature in the future.

Donna Goldsworthy, litigation expert at Irwin Mitchell, said: