The House of Lords handed down judgment in the case of Gray v Thames Trains and others [2009] UKHL 33 on 17th June 2009. The case involved Mr. Gray, a victim of the Ladbroke Grove rail crash, who had subsequently suffered from Post-traumatic Stress Disorder. Under the effects of this condition he fatally stabbed a man and then handed himself in to the police. After being convicted of manslaughter he was detained in a hospital pursuant to the Mental Health Act 1983 c.20. The Court of Appeal held that Mr. Gray was entitled to compensation for loss of earnings after his arrest for the killing. The appellants appealed and the respondent, Mr. Gray, cross appealed.

The appellants' principal argument invoked a special rule of public policy. They argued a party could not recover compensation for loss which had been suffered in consequence of their own criminal act. In addition, a party could not recover for damage resulting from their loss of liberty, or any other punishment lawfully imposed upon him, as a result of their own unlawful act. The House discussed how the rule was to be interpreted in the light of earlier case law and reversed the decision of the Court of Appeal. As a matter of policy, the appellants could not be held liable for the loss of earnings.