Common law remedies Flashcards
What are damages?
Damages are a sum of money given to the claimant from the defendant
The most common form of remedy
After how long can damages no longer be claimed?
6 years, under the limitation act 1980
What is the purpose of damages, under contract law?
To put the claimant in the position they would have been in, had the contract been properly commenced - Expectation interest
Where this is not possible, parties are returned to their pre-contractual position - Reliance interest
What is the idea of mitigation?
Limits the amount of damages. A party has a duty to mitigate their losses and keep them to a minimum. They must take reasonable steps to mitigate, but they don’t have to go the extra mile
The claimant must not take any unreasonable steps that may cause loss
Pilkington v Wood [1953]
Facts: The claimant purchased a house with a defective title. After the purchase, he had to relocate and could not sell the house, so he brought an action against his solicitor for negligence in noticing the defect
Held: The solicitor was liable for the difference in value for what it would have been worth without the defect, but not for the added loss caused by the need to move as it was not in the reasonable contemplation of parties that he would need to move so soon after sale
The Borag [1981]
Facts: A ship was detained for breach of contract. The owners borrowed large sums of money at exorbitant rates for its release
Held: Court of appeal would not allow its recovery - interest too high
What is remoteness of damage?
If the damages are claimed are unexpected or too remote, the claim will fail
Hadley v Baxendale [1854]
Facts: The crankshaft broke at Hadley’s mill and the mill would not work. H contracted B for a replacement stating he needed it immediately, but this took too long so H claimed for the extra days
Held: This was not too remote
Victoria Laundry (Windsor) v Newman Industries [1949]
Facts: V’s business was expanding and asked N to install a new boiler. After the contract was made but before installation, V won a lucrative government contract. As V had a new boiler coming, he said yes. N damaged the boiler and it wasn’t fixed for 5 months
Held: V cold claim loss from the usual business but not from the new contract
Hadley v Baxendale [1854] was criticised in The Achillies [2998], what are the facts of this case?
Facts: A ship was chartered for 7 months, returning 9 days late. The owners claimed a higher rate of damages than the hirers thought was necessary
Held: The losses were at the hirer’s rate as it was standard practice in the industry
What did Supershielf Ltd v Siemens Building Technologies [2008] confirm?
- Hadley remains the standard rule
- Achilleas applies where particular trade or practice expectations exist.
