Consequential Loss in UK Law

Leading Cases
  • Doyle v Olby (Ironmongers) Ltd
    • Court of Appeal (Civil Division)
    • 31 Ene 1969

    In contract, the damages are limited to what may reasonably be supposed to have been in this contemplation of the parties. The defendant is bound to make reparation for all the actual damages directly flowing from the fraudulent inducement. All such damages can be recovered: and it does not lie in the mouth of the fraudulent person to say that they could not reasonably have been foreseen.

  • Parabola Investments Ltd and another v Browallia Cal Ltd and Others
    • Court of Appeal (Civil Division)
    • 05 May 2010

    Some claims for consequential loss are capable of being established with precision (for example, expenses incurred prior to the date of trial). Other forms of consequential loss are not capable of similarly precise calculation because they involve the attempted measurement of things which would or might have happened (or might not have happened) but for the defendant's wrongful conduct, as distinct from things which have happened.

    The claimant has first to establish an actionable head of loss. Where that involves a hypothetical exercise, the court does not apply the same balance of probability approach as it would to the proof of past facts. Rather, it estimates the loss by making the best attempt it can to evaluate the chances, great or small (unless those chances amount to no more than remote speculation), taking all significant factors into account.

  • Hodgson and Others v Trapp and Another
    • House of Lords
    • 10 Nov 1988

    My Lords, it cannot be emphasised too often when considering the assessment of damages for negligence that they are intended to be purely compensatory. If, in consequence of the injuries sustained, the plaintiff has enjoyed receipts to which he would not otherwise have been entitled, prima facie, those receipts are to be set against the aggregate of the plaintiff's losses and expenses in arriving at the measure of his damages.

  • Transocean Drilling U.K. Ltd (Claimant/Appellant) v Providence Resources Plc
    • Court of Appeal (Civil Division)
    • 13 Abr 2016

    The expression "consequential loss" has caused a certain amount of difficulty for English lawyers, mainly as a result of attempts to define its meaning in the interests of commercial certainty: see the line of cases that includes Saint Line v Richardsons Westgarth & Co Ltd [1940] 2 K.B. 99, Croudace Construction Ltd v Cawoods Concrete Products Ltd (1978) 8 B.L.R. 20 and Deepak Fertilisers Ltd v ICI Chemicals and Polymers Ltd [1999] Lloyd's Rep. 387.

  • Smith New Court Securities Ltd v Scrimgeour Vickers (Asset Management) Ltd and Another
    • House of Lords
    • 21 Nov 1996

    But in cases where property has been acquired in reliance on a fraudulent misrepresentation there are likely to be many cases where the general rule has to be departed from in order to give adequate compensation for the wrong done to the plaintiff, in particular where the fraud continues to influence the conduct of the plaintiff after the transaction is complete or where the result of the transaction induced by fraud is to lock the plaintiff into continuing to hold the asset acquired. But in cases where property has been acquired in reliance on a fraudulent misrepresentation there are likely to be many cases where the general rule has to be departed from in order to give adequate compensation for the wrong done to the plaintiff, in particular where the fraud continues to influence the conduct of the plaintiff after the transaction is complete or where the result of the transaction induced by fraud is to lock the plaintiff into continuing to hold the asset acquired.

  • Dimond v Lovell
    • House of Lords
    • 11 May 2000

    Mrs. Dimond was at the time of the accident the owner and person in possession of her car. If it were destroyed by fire the next day by the negligence of another, the second tortfeasor would only have to pay damages equal to the reduced value of the car and the original tortfeasor would still have to pay damages corresponding to the cost of putting right the damage which he caused to the car.

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Legislation
  • Social Security (Loss of Benefit) (Consequential Amendments) Regulations 2002
    • UK Non-devolved
    • 1 de Enero de 2002
  • Finance Act 2015
    • England & Wales
    • 1 de Enero de 2015
    ...... of that receipt, a person may make a claim for one or more consequential adjustments to be made in respect of the other tax. . . (5) On a claim ... S-22 . Miscellaneous loss relief 22 Miscellaneous loss relief . (1) Chapter 7 of Part 4 of ITA ......
  • Finance Act 2014
    • UK Non-devolved
    • 1 de Enero de 2014
    ...... . . (b) make incidental, consequential, supplementary or transitional provision or savings.". . (2) Section 98 ... . (3) In section 1202 (surrendering of loss and amount of film tax credit), for subsections (2) and (3) substitute-. ......
  • Consumer Rights Act 2015
    • England & Wales
    • 1 de Enero de 2015
    ...... subsections (3) to (6) (but not so as to recover twice for the same loss), or. . . (b) instead of such a remedy, or. . . (c) where no such ... Schedule 1 (amendments consequential on this Part) has effect. 2 . Unfair terms PART 2 . Unfair terms . What ......
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Books & Journal Articles
  • REVIEWS
    • Núm. 23-4, Julio 1960
    • The Modern Law Review
    Book reviewed in this article: Judicial Review of Administrative Action. By S. A. De Smith, M.A., PH.D. Wills, Probate and Administration. A Manual of the Law. By B. S. Ker, M.A. (Cantab.) The Law ...
    ...... the question whether damzages should be recoverable for loss caused by an abuse of power. The fact that council houses ... C. CONSEQUENTIAL Loss. Second edition. By DENIS RILEY, F.C.I.I. [London: Sweet ......
  • Measures in Misrepresentation: Recent Steps in Awarding Damages
    • Núm. 55-5, Septiembre 1992
    • The Modern Law Review
    ...... which he, the plaintiff, has relied and thereby suffered a loss. Although liability under the Act is relatively easy to ... distinguished clearly between measure of damage and consequential loss, commenting that Lord Collins in an earlier authority ......
  • Books and Publications Received
    • Núm. 23-4, Julio 1960
    • The Modern Law Review
    ...... to find a sound basis for calculating what indirect losses in the way of loss of profits and additional expenses ... The business man seeking to insur‘e against consequential loss has to steer a course between insuring too much and ......
  • SYSTEMS TO CUT YOUR FIRE INSURANCE COSTS
    • Núm. 80-12, Octubre 1980
    • Industrial Management & Data Systems
    • 16-16
    OVER £355 million went up in flames in 1979 in Great Britain — and that was just direct damage; many more millions of pounds went in lost production, profits and exports.
    ......Clearly, industry needs to be fully protected against these losses by insurance but they should also take every possible precaution to avoid ...No business man should be without consequential loss, or loss of income insurance. A suitably arranged insurance will ......
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Law Firm Commentaries
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