Damages for Loss of Profits in UK Law

Leading Cases
  • Parabola Investments Ltd and another v Browallia Cal Ltd and Others
    • Queen's Bench Division (Commercial Court)
    • 22 May 2009

    In my judgment, there is no such restrictive principle as that for which Mr Brindle contends. Obviously there will be cases where, on the evidence, it is not possible for the claimant to show on a balance of probabilities that any alternative transaction or business would have been profitable. There is simply no added requirement before such damages are recoverable that the alternative transactions(s) be shown to be “necessarily profitable”.

    Mr Brindle placed particular emphasis on the passage in Kerr J's judgment where he refers to the claimant being exposed to the risk of being worse off. It was contended that this case was analogous to Bailey, since it too involved speculative trading. Accordingly, the defendants submitted that as in that case, the court should conclude that the alleged possibility of profit was too speculative to be recoverable.

  • Regus (UK) Ltd v Epcot Solutions Ltd
    • Queen's Bench Division (Commercial Court)
    • 04 May 2007

    I conclude that in principle it is entirely reasonable for Regus to restrict damages for loss of profits and consequential losses from the categories of loss for which it will become liable when in breach of contract. As it is not open to the court to sever a clause which fails to meet the requirements of the Act clause 23 is of no effect.

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

    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.

  • Wellesley Partners LLP v Withers LLP
    • Chancery Division
    • 11 Mar 2014

    He also amended the non-compete agreement on 6 May after speaking to Mr Channing to provide expressly that WPHK should not use the name Wellesley Partners in Europe or the US (paragraph 160(4) above), and I infer from this that Mr Channing had told him that WP was thinking of expanding into the US among other places. I also find that it was reasonably foreseeable that if Addax were able to withdraw its capital at short notice, it might prevent WP from earning profits in the US.

  • Omak Maritime Ltd v Mamola Challenger Shipping Company Ltd
    • Queen's Bench Division (Commercial Court)
    • 21 Sep 2010

    The authorities therefore state a rational and sensible explanation for the view that the expectation loss principle underpins the award of damages in wasted expenditure cases. The authorities to which I have referred, in particular L. Albert & Son v Armstrong Rubber and CCC Films (London) Ltd. v Impact Quadrant Films Ltd. provide a rational and sensible explanation for the view that that burden should be on the defendant.

  • Ramzan v Brookwide
    • Chancery Division
    • 08 Oct 2010

    I reject Mr Mitchell's argument that in order to recover under this head, the Claimant must prove that he would install a new fire escape. No authorities were cited to me in support of that proposition and, as Mr Stenhouse pointed out, the point was never even pleaded, though I would not have dismissed it on that technical ground alone if it had had any merit.

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Legislation
  • Income and Corporation Taxes Act 1988
    • UK Non-devolved
    • January 01, 1988
    ......profits or gains respectively described or comprised in ... . (6) If a chargeable gain or allowable loss accrues to a. company at a time not otherwise ... S-329 . Interest on damages for personal injuries. 329 Interest on damages ......
  • Companies Act 1981
    • UK Non-devolved
    • January 01, 1981
    ...... content of the balance sheet and profit and loss. account and any additional information to be ...company— . (i) require its profits, if any, or other income to. be applied in ... (2) A company shall not be liable in damages in respect of. any failure on its part to redeem ......
  • Capital Allowances Act 1968
    • UK Non-devolved
    • January 01, 1968
    ...... purposes of a trade at a time when the profits or gains of. the trade are not assessable in ... of this section so as to create or augment a loss in any. accounting period; and where on a company ...compensation, damages or insurance moneys in respect. of his rights ......
  • Companies Act 2006
    • UK Non-devolved
    • January 01, 2006
    ...... S-37 . Right to participate in profits otherwise than as member void 37 Right to ... . . (b) to indemnify the company for any loss or damage resulting from the transaction. . (4) ... and payment by the company of any damages sustained by any party aggrieved. . (3) On ......
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Books & Journal Articles
  • Measures in Misrepresentation: Recent Steps in Awarding Damages
    • Nbr. 55-5, September 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 ... difference between the two concerns the recovery of lost profits. On the face of it, profits are an expectation loss,29 and ......
  • Two Problems In Damages
    • Nbr. 23-4, July 1960
    • The Modern Law Review
    ...... It would not be proper to cast the loss of this extra profit upon the defendant without showing that ... has also been applied to compensation for loss of profits arising from the exercise of statutory power^,'^ and to damages ......
  • Civil Actions by Shareholders against an Insolvent Issuer: Soden v British & Commonwealth Plc
    • Nbr. 6-2, April 1998
    • Journal of Financial Crime
    • 143-145
    X acquires securities of a company, Y plc. It transpires that Y plc has induced X to acquire the securities by a misrepresentation as to the underlying asset worth of Y plc. Y plc subsequently goes...
    ......Should X's claim against Y plc for damages arising from the misrepresenta-tion be ... which were designed to reflect the loss suffered by the parent arising from the ... of a member) by way of dividends, profits or otherwise' within the meaning of s. 74(2)(f) ......
  • IN DEFENCE OF LORD DEVLIN
    • Nbr. 34-5, September 1971
    • The Modern Law Review
    ...... Barnurd of exemplary damages as arn anomalous feature of English ... waiver of tort and an account of profits. The long established remedy by way ... been matched by an equivalent loss to the plaintiff 45 ; so too claims ......
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Law Firm Commentaries
  • Enforceability Of Exclusion Clauses - Court Of Appeal Decision
    • Mondaq United Kingdom
    ......business. Excluding liability for loss of profits did not leave. the customer without a ... unpaid charges and Epcot counter-claimed damages. for loss of profits and opportunity to develop ......
  • Excluding Liability: What Are The Limits?
    • Mondaq United Kingdom
    ...... a number of counterclaims including damages for loss of profits, loss of the opportunity to ......
  • Exclusion Clauses Re-Examined - Regus (UK) Ltd v Epcot Solutions Ltd
    • Mondaq United Kingdom
    ...... financial losses in a supplier's standard terms of. business. ... profits, loss of anticipated savings, loss of or damage ... Regus' liability for other losses, damages or expenses to. £50,000. The customer ......
  • Expectation Damages or Reliance Damages?
    • Mondaq United Kingdom
    ...... the vessel, despite the fact that they had more than recouped the losses claimed. In making its decision, the court confirmed that a party ... claim damages in different ways: 'expectation damages' for loss of profits or 'reliance damages' for wasted expenditure. This is relevant where a ......
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