Damages Cases
- Created by: k1016450
- Created on: 25-04-14 12:17
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- Damages
- The Heron II 1967
- Facts: The plaintiffs contracted with the defendants to transport their sugar by sea. The defendants unlawfully deviated and due to a fluctuation in the sugar market the sugar had to be sold at a lower price.
- Principle: The loss must be a direct result of the breach of contract and must be within the contemplation of the party in breach.
- Outcome: It can be seen that a deviation would cause a delay and therefore the price may change, therefore they had to pay damages.
- Ruxley Electronics v Forsyth 1996
- Facts: A swimming pool supposed to have a diving area of 7ft 6" deep was built 6ft deep instead (though still suitable for diving).
- Principle: The assessment of damages must be reasonable and proportional - if expenditure is out of proportion to the benefit to be obtained, it is not reasonable to insist damages to that extent.
- Outcome: Damages were paid but not to the full extent of a new pool.
- Smith v Scrimgeour Vickers 1996
- Facts: Shares were sold through a broker, who claimed falsely claimed other bids had been made. Fraud had been committed on the company whose shares were bought and on knowledge of this, share prices dropped.
- Principle: Damages for deceit are not limited to those that are reasonably foreseeable, and remoteness of damage does not apply, just causation.
- Outcome: Damages were paid for the difference in purchase price and the sale price (as Smith sold off the shares to mitigate damage).
- AG v Blake 2000
- Facts: A former secret service officer wrote an autobiography relating in part to his role. By the time of writing, the information was no longer confidential or damaging to the public interest.
- Principle: Someone under a fiduciary duty may not make a profit, and if a profit is made, they are accountable in equity. Damages in contract may also be claimed for profits where it is just and equitable.
- Outcome: Profits for the book were to be returned to the government.
- The Heron II 1967
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