Wednesday, 9 December 2020
Damages 2
Contract Law
Non Pecuniary Losses Continued.
• Damages are not normally available for non-pecuniary loss although in some
exceptional cases it may be awarded if the loss was consequent on physical injury or
inconvenience or the contract was for the purpose of enjoyment or alleviation of
distress.
• General Rule is best illustrated in Addis v Gramophone Co. Ltd (1909) where the court
refused damages for injured feelings caused by humiliating and wrongful dismissal.
However, there have always been exceptions for pain and suffering consequent upon
personal injury and for actual physical inconvenience, as in Bailey v Bullock (1950)
where a breach of contract caused the claimant to have to live with his in-laws.
A breakthrough in English Law was made in Jarvis v Swans Tours Ltd (1973) ;
• Claimant was promised a ‘great time’ for holiday that cost £63, was awarded £125
when awarded £125 when he did not get it.
• Two Exceptional Categories were identified: main purpose of the contract was to
provide mental satisfaction - where the mental distress suffered was as a direct
consequence of physical injury or inconvenience caused by the defendants breach
(Perry v Sydney Phillips (1982) breach by a surveyor led the claimant to buy a
house that was falling down and smelt, this physical damage and inconvenience
caused the claimant mental distress.
• The House of Lords in Farley v Skinner (2001) - exceptions to the general rule that
damages are only available for physical and financial losses and extended the
range of the exceptions << Difference in value or cost of cure.
Mitigation
• The claimant is under a duty to take reasonable steps to put himself in the position
he would have been in had the contract been performed (i.e to minimise his lost
expectantions)
• The Claimant is allowed to recover any cost reasonably incurred in an attempt to
mitigate.
• Any benefits accused to the claimant by reason of the breach will reduce the
claimants damages, but not if they are ‘collateral’ and would have accrued anyway.
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Damages 2
Contract Law
Non Pecuniary Losses Continued.
• Damages are not normally available for non-pecuniary loss although in some
exceptional cases it may be awarded if the loss was consequent on physical injury or
inconvenience or the contract was for the purpose of enjoyment or alleviation of
distress.
• General Rule is best illustrated in Addis v Gramophone Co. Ltd (1909) where the court
refused damages for injured feelings caused by humiliating and wrongful dismissal.
However, there have always been exceptions for pain and suffering consequent upon
personal injury and for actual physical inconvenience, as in Bailey v Bullock (1950)
where a breach of contract caused the claimant to have to live with his in-laws.
A breakthrough in English Law was made in Jarvis v Swans Tours Ltd (1973) ;
• Claimant was promised a ‘great time’ for holiday that cost £63, was awarded £125
when awarded £125 when he did not get it.
• Two Exceptional Categories were identified: main purpose of the contract was to
provide mental satisfaction - where the mental distress suffered was as a direct
consequence of physical injury or inconvenience caused by the defendants breach
(Perry v Sydney Phillips (1982) breach by a surveyor led the claimant to buy a
house that was falling down and smelt, this physical damage and inconvenience
caused the claimant mental distress.
• The House of Lords in Farley v Skinner (2001) - exceptions to the general rule that
damages are only available for physical and financial losses and extended the
range of the exceptions << Difference in value or cost of cure.
Mitigation
• The claimant is under a duty to take reasonable steps to put himself in the position
he would have been in had the contract been performed (i.e to minimise his lost
expectantions)
• The Claimant is allowed to recover any cost reasonably incurred in an attempt to
mitigate.
• Any benefits accused to the claimant by reason of the breach will reduce the
claimants damages, but not if they are ‘collateral’ and would have accrued anyway.
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