Damages Flashcards
what is the meaning and purpose of damages? what should be kept in mind?
Deterrence/ Compensation
Innocent party can claim, in the case of contractual breach
note: not all losses are recoverable
Case, showing purpose of awarding damages- Lord Reed
Morris- Garner v One Step 2018- Lord Reed- place the claimant in the position as he would have been in, if the contract had been performed
When are damages assessed?- general rule vs circumstance which require something diff to be done
Johnson v Agnew 1980- assessed at time of breach
Hooper v Oates 2013- sale of property, assessed not at time of breach due to significant losses- decline in market value
What is expectation loss?
looking forward
What loss did the claimant have because of his expectations, which were not fulfilled?
aims to place them in position, as if the promise had been kept
purpose of expectation loss approach + case law
Robison v Harman- to place innocent party in the same situation with respect to damages, as if the contract had been performed
What is the ‘cost of cure’? + case law
Watts v Morrow 1991- proper measure of damages
for instance- diminution of value rather than cost of repairs
What is loss of amenity?- pleasure
Ruxley Electronics v Forsyth 1995- wrong depth of pool
disproportionality between the cost of repairs and the loss of pleasure cost
What is the reliance loss approach?
Looking backwards
What loss did the claimant have because he relied on the promise?
Aims to place them in a position as if the promise had never been made
reliance loss- case law
Haulage v Middleton 1983- improvements on a leased property
Damages refused, on grounds that the improvements would be left behind anyways, after the end of the tenancy contract
Causation?- limit to damages claims
Link between breach of contract and loss
Remoteness + test for remoteness (case law)- another limit to damages claims
loss claimed goes a step- too far?
2 limb test- Hadley v Baxendale 1854- claimant failed to provide defendant with adequate instructions- in this case the need for an urgent delivery
Special Circumstances and circumstances arising naturally- case law, applying the two limb test
Arising naturally- South Australia Asset Management v York Montague 1996
Special- Victoria Laundry v Newham Industries 1949
Duty to mitigate-taking all reasonable steps to reduce loss- case law
British Westinghouse Co v Underground Electric Railways 1912
Examples of Non- Financial loss
Distress, Discomfort, Disappointment
Non-financial loss case law
Malik v BCCI 1997- inconvenience
Jarvis v Swans Tours 1973- holiday disappointment
