[2007] EWCA Civ 3, 11 January 2007. Appeal by water company (T) against the decision ([2005] EWHC 2987 (QB)) that the diminution in value of an archive, partly lost and damaged by flooding, should be calculated by cost of reinstatement of the archive rather than its sale value. The respondent publishing company's (P) archive had been damaged by water escaping from T's water main, and T was liable for loss and damage. P's claim for damages was based on replacing the archive, but T contended P had no intention of doing so. The judge found in P's favour and T appealed. T also objected to the treatment of staff costs in P's claim for damages and argued they should not be recoverable as damages. "Held": P was entitled to recover damages on a reinstatement basis and to recover for the cost of staff time dealing with the aftermath of the flood as the extent of the diversion of staff time had been established.