damages cases

• What is the purpose of an award of damages in contract law?

  To place the claimant in the same position
• When are damages normally assessed in contract law?

  At the time of breach
• What was the issue in Golden Strait Corporation v Nippon Ysen Kubishikia kaisha?

  • Charterparty agreed for 7 years
  • Charterer repudiated early
  • War broke out before damages assessed
  • Question: Should damages reflect full term or shorter period?
• What did the court decide regarding damages in Golden Strait Corporation v Nippon Ysen Kubishikia kaisha?

  Damages were limited to actual loss
• What should the court consider when assessing damages for breach of contract?

  All relevant facts known at the time
• What was the case of Hooper v Oates about?

  • Parties agreed to sell property
  • Purchaser failed to complete
  • Sellers accepted repudiation after notice
  • Sellers suffered substantial losses
• How did the court assess damages in Hooper v Oates?

  From the date sellers took back property
• What did the court recognize about the sellers' actions in Hooper v Oates?

  They mitigated loss by retaining the property
• Is there a policy that dictates damages must be assessed at breach date?

  No, there is no such policy
• What was the decline in property market considered in Hooper v Oates?

  Part of the loss for which sellers were compensated
• What are the two measurements of damages in contract law?

  1. Expectation loss
  2. Reliance loss
• What is expectation loss in contract law?

  To put the claimant in the position had contract performed
• What was the case of Robinson v Harman about?

  • Harman promised to lease property
  • Refused to lease later
  • Robinson incurred expenses and lost profit
  • Court held Robinson entitled to expectation loss
• What is the common law rule regarding loss due to breach of contract?

  Claimant should be placed as if contract performed
• What was the case of Radford v De Froberville about?

  • Plaintiff obtained planning permission for a house
  • Correct measure of damages was cost of erecting a wall
  • Damages based on cost of performance, not market value
• What is the appropriate measure of damages in property breach cases?

  Cost of performance rather than market value
• What was the case of Ruxley Electronics and Construction Ltd v Forsyth about?

  • Forsyth contracted for a swimming pool
  • Pool completed but diving area was too shallow
  • Court held cost of reinstatement not appropriate if disproportionate
• What is reliance loss in contract law?

  Loss incurred due to reliance on D's promise
• What was the case of Anglia Television v Reed about?

  • Reed contracted to appear in a play
  • Wrongfully repudiated the contract
  • Anglia claimed total wasted expenditure
  • Court held they could claim pre-contract expenditure if foreseeable
• What can a claimant recover regarding reliance losses?

  Expenditure incurred before and after contract formation
• What was the case of C and P Haulage Co Ltd v Middleton about?

  • Middleton improved property under a license
  • Ejected unlawfully before license ended
  • Court held no recovery for reliance loss due to bad bargain
• What is required to establish causation in negligence claims?

  Prove breach was effective cause of loss
• What was the case of Galoo v Bright Grahame about?

  • Galoo sued auditors for negligence
  • Auditors failed to detect fraudulent trading
  • Court held negligence not effective cause of losses
• What must a claimant prove in negligence claims?

  Breach must be factual and legal cause of loss
• What was the case of Hadley v Baxendale about?

  • Windmill ceased working due to broken crankshaft
  • Claimants sued for loss of profit from delay
  • Court held damages recoverable only if foreseeable
• What are the two limbs for remoteness in contract law?

  Arise naturally or within reasonable contemplation
• What was the case of South Australia Asset Management Corp v York Montague about?

  • Lenders made loans based on negligent valuations
  • Property values dropped, causing financial losses
  • Court held valuer liable only for losses from incorrect valuation
• What is the "SAAMCO Cap" principle?

  Limits damages based on scope of duty
• What was the case of Victoria Laundry (Windsor) v Newman Industries about?

  • Victoria Laundry purchased a boiler
  • Delayed delivery caused loss of ordinary profits
  • Court held ordinary profits recoverable, but not extraordinary losses
• What can a claimant recover for losses in breach of contract?

  Reasonably foreseeable losses at contract formation
• What was the case of Koufos v C Czarnikow Ltd about?

  • Shipowner delayed delivery of sugar
  • Market price dropped during delay
  • Court held loss recoverable as foreseeable by carrier
• What is the test of remoteness in contract law?

  Focuses on whether loss was a real possibility
• What was the case of Transfield Shipping Inc v Mercator Shipping Inc about?

  • Transfield returned ship late
  • Mercator lost part of daily hire rate
  • Court held liability depends on foreseeability and intention
• What is required for mitigation of damages in contract law?

  Claimant must take reasonable steps to minimize loss
• What was the case of British Westinghouse Co v Underground Electric Railway Co about?

  • Underground Railway replaced defective turbines
  • Saved on operating costs with new system
  • Court held savings could be deducted from damages
• What principle did the court emphasize in British Westinghouse Co v Underground Electric Railway Co?

  Principle of mitigation to reduce loss
• What was the case name involving British Westinghouse and the Underground Electric Railway Company?

  British Westinghouse Co v Underground Electric Railway Co
• Why did the Underground Electric Railway Company replace the turbines?

  Due to defects in the turbines
• What opportunity did the Underground Railway take after the breach?

  To install a more efficient system
• What was the main legal issue regarding the savings made by the Underground Railway?

  Whether savings could be deducted from damages