DAMAGES AND LOSS OF EARNINGS DUE TO COVID: A MINOR REDUCTION IN INCOME FOUND

February 10, 2021 · by · in Coronavirus, Damages

One of the things considered in the judgment in Kim v Lee [2021] EWHC 231 (QB) was whether the claimant would have suffered a reduction in income due to Covid in any event. This is likely to be a live topic in many claims and it is worthwhile looking at those cases where the issue arises.

 

THE CASE

Mrs Justice Steyn was assessing damages in an action for libel.  The claimant was a football correspondent and journalist. One head of claim was for the claimant’s loss of earnings in reporting on football matches.

THE JUDGMENT ON LOSS OF INCOME AND THE IMPACT OF COVID-19

 

The defendant did not attend the hearing, indeed was debarred from defending.  However the judge raised the question of whether the claim for loss of income would have been reduced by Covid-19, this was dealt with in the evidence.

 

    1. The Claimant has submitted a schedule of loss in which he claims £31,250 loss of income as special damages. He has not made any claim for loss of church income. Nor has he made any claim for future loss of income. The sum claimed represents 25 months’ loss of an average net monthly income of £1,050 from Daum Kakao Sports and £200 from Ilgan Sports.
    1. I raised the issue of the extent to which the Claimant’s income as a reporter might have been reduced, in any event, by the Covid-19 pandemic. Mr Roberts helpfully explored this issue with each of the witnesses. The Claimant did not believe there would have been any reduction due to the pandemic. Mr Lee’s evidence was that his income had reduced by about 10% over the course of the 12 months or so of the pandemic. Ms Hur said that she was working on similar contracts to the Claimant. Ms Hur’s evidence was that her income from covering EPL matches did not reduce. There was a period during last season when Premier League matches were suspended, but each of those matches was subsequently played (and so she was able to report on them), with the season ending later than usual. However, Ms Hur’s income from covering the Champions League reduced by about £350-400 (representing the loss of articles in respect of about seven or eight matches). This was due to a reduction in the number of Champions League matches (due to fixtures that would normally be played both home and away being reduced to one match) and due to restrictions on travel abroad.
  1. In my judgment, it is likely that there would have been some reduction in the Claimant’s income due to the pandemic, but it is probable that his income would have reduced by a similar amount, and for the same reasons, as Ms Hur’s income reduced. I therefore find that the Claimant’s loss of income is £30,850, plus interest on special damages of 2.5% per annum from the mid point of the period of loss.
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