Hadley v Baxendale

JurisdictionEngland & Wales
CourtExchequer
Judgment Date23 Feb 1854

English Reports Citation: 156 E.R. 145

IN THE COURTS OF EXCHEQUER AND EXCHEQUER CHAMBER

Hadley and Another
and
Baxendale and Others

S. C 2 C. L. R 517; 23 L. J. Ex. 179, 18 Jur. 358; 2 W. R 302 Applied, Smeed v. Foord, 1859, 1 El. & El 602, Gee v. Lancashire and Yorkshire Railway Company, 1860, 6 H. & N. 216, Wilson v Lancashire and Yorkshire Railway Company, 1861, 9 C. B (N S) 632, Woodger v. Great Western Railway Company, 1867, L R. 2 C. P. 321, Coty v. Thames Ironworks Company, 1868, L. R. 3 Q. B 189, Engel v. Fitch, 1868, L R. 3 Q B 323, L R 4 Q B 668; Prehn v Royal Bank of Liverpool, 1870, L R 5 Ex 97, Smith v Green, 1875, 1C P. D 94, Sanders v Stuart, 1876, 1 C P D 328, Wilson v General Iron Screw Colliery Company, 1877, 47 L J. Q B 240, Smith v Day, 1882, 21 Ch. D 428; Hamilton v Magill, 1883, 12 L. R. Ir 186; Rodocunachi v. Milburn, 1886, 17 Q. B D. 320 affirmed, 18 Q B. D 67; William v. Peel River Land Company, 1886, 55 L T 693, Hammond v Bussey, 1887, 20 Q B D 80; Couper v Richards, 1887, 3 T L R 739, White v. Peto, 1888, 58 L T 713; Ebbetts v Conquest, [1895] 2 Ch. 377 affirmed, [1896] A C. 490. M'Neill v. Richard, [1899] 1 Ir. R 85, Actus v Great Western Colliery Company, [1899] 2 Q. B 413. Not applied, Collard v South Eastern Railway, 1861, 7 H & N 79, Larios v Bonany, 1873, L. R. 5 P. C 358, Bradshaw v. Lancashire and Yorkshire Railway, 1875, L R. 10 C P. 193, Skinner v. City of London Marine Insurance Corporation, 1885, 14 Q B D 887, Marsh v Loseph, [1897] 1 Ch 231 Discussed, Simon, v Patchett, 1857, 7 E & B 568, Wilson v Newport Dock Company, 1866, 4 H. & C 232, L R. 1 Ex 177, Horne v Midland Railway Company, 1873,

L. R 8 C P 131, Elhinqer Actien-Gesellschafft v Armstrong, 1874, L R. 9 Q B. 478, Sawdon v Andrew, 1874, 30 L T. 25, Irvine v Midland Great Western Railway, 1880, 6 L. R. Ir. 55, Finlay v. Chirney, 1888, 20 Q B D. 500, The Argentina, 1888, 13 P D 197 affirmed, 14 A C 519. Dissented from, Boyd v. Fitt, 1863, 14 Ir C L R. 43 Distinguished, Lilley v. Doubleday, 1881, 7 Q. B. D. 512; Clate

v. Dobson, [1911] 1 K B. 42 Referred to, De Mattos v. Gibson, 1860, 1 J & H. 79,

Bain v. Fothergill, 1874, L R 7 H l177, Baxendale v. London, Chatham, and Dover

Railway company, 1874, l. R. 10 Ex. 45, Hobb v London and South Western Railwat

Company, 1875, L. R 10 Q B. 117, Grebert-Borgnis v. Nugent, 1885, 15 Q B D

89: South African Territories v. Wallington, [1897] 1 Q. B 692; Boxtock v Nicholson, [1904] 1 K. B. 737, Cointat v Myham, [1913] 2 K B 222

[341] hadley and another v. baxendale and others. Feb. 23,(a) 1854.- Where two parties have made a contract, which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered either arising Haturally, i e according to the usual course of things, from such breach of contract itself, 01 such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract, as the probable result of the breach of it-Where the plaintiffs, the owners of a flour mill, sent a broken iron shaft to an office of the defendants, who were common carriers, to be conveyed by them, and the defendants' clerk, who attended at the office, was told that the mill was stopped, that the shaft must be dehveied immediately, and that a special entry, if necessary, must be made to hasten its delivery , and the delivery of the broken shaft to the consignee, to whom it had been sent by the plaintiffs as a pattern, by which to make a new shaft, was delayed for an unreasonable time ; in consequence of which, the plaintiffs did not receive the new shaft for some days after the time they ought to have received it, and they were consequently unable to work their mill from want of the new shaft, and thereby incurred a loss of profits :-Held, that, under the circumstances, such loss could not be recovered in an action against the defendants as common carriers. [S. Q 2 C. L. E 517 ; 23 L. J. Ex. 179, 18 Jur. 358; 2 W. R 302 Applied, Smeed v. Foord, 1859, 1 El. & El 602 , Gee v. Lancashiie and Yothhitc Railway Company, 1860, 6 H. & N. 216, Wilson v Lancashire and Yorkshire Railway Company, 1861, 9 C. B (N S ) 632, Woodgei v. Great Western Railway Company, 1867, L R. 2 C. P. 321 , Coty v. Thames Iwnworks Company, 1868, L. R. 3 Q. B 189 , Engel v. Fitch, 1868, L R. 3 Q B 323, L R 4 Q B 668 ; I'rehn v Royal Hank of Liverpool, 1870, L R 5 Ex 97, Smith v Green, 1875, 1C P. D 94, Jandas v Stuart, 1876, 1 C P D 328 , Wilson v General Iron Screw Colliery Company, 1877, 47 L J. Q B 240, Smith \ Day, 1882, 21 Ch. D 428 ; Hamilton v Magill, 1883, 12 L. R. Ir 186 ; Rodocnnachi v. Milbvrn, 1886, 17 Q. B D. 320 affirmed, 18 Q B. D 67 ; William* v. Peel River Land Company, 1886, 55 L T 693 , Hammond \ Bus^ey, 1887, 20 Q B D 80 ; Couper v Richards, 1887, 3 T L R 739 , White v. Petu, 18N8, 58 L T 713; Ebbttts v Conquest, [1895] 2 Ch. 377 affirmed, [IK96] A C. 490 . M'Nnll v. Richard-*, [1899] 1 Ir. R 85 , Actus v Great Western Colliety Company, [1899] 2 Q. B 413. Not applied, Collard v South Eastetn Railway, 1861, 7 H &N 79, Lartosv Bonany, 1873, L. R. 5 P. C 358, BradJiaw v. LancaJme. and Yoikshue Railway, 1875, L R. 10 C P. 193, Skinner v. City of London Marine Insurance Corpoiahon, 1885, 14 Q B D 887 , Maih v loseph, [1897] 1 Ch 231 Discussed, Simom, v Patchett, 1857, 7 E & B 568, Wilson v Newpoi t Dock Company, 1866, 4 H. & C 232 , L R. 1 Ex 177, Home v Midland Railway Company, 1873, L. R 8C P 131, Elhinqer Actun-Gtsdlsthafft v A-tm^ong, 1874, L R. 9 Q B. 478 , Sawdoit v Andiew, 1874, 30 L T. 25 , Irvine v Midland Great Western Railway, 1880, 6 L. R. Ir. 55 , Fmlay v. Chuney, 1888, 20 Q B D. 500, The Argentina, 1888, 13 P D 197 affirmed, 14 A C 519. Dissented fiom, Boyd v. Fitt, 1863, 14 Ir C L R. 43 Distinguished, Lilley v. Douhleday, 1881, 7 Q. B. D. 512; Clate v. Dobson, [1911] 1 K B. 42 Referred to, De Mattoi v. Gibson, 1860, 1 J & H. 79, Buin v. Fotheigill, 1874, L R 7 H L 177 , Baxendale v. London, Chatham, and Dovei Railway Company, 1874, L. R. 10 Ex. 45, Hobb* v London and South Western Rad- way Company, 1875, L. R 10 Q B. 117 , Grebett-B^gn^ v. Nugent, 1885, 15 Q B D 89: South African Temtoites v. Walhngton, [1897] 1 Q. B 692; Boxtock v Nichol son, [1904] 1 K. B. 737 , Comtat v Hyham, [1913] 2 K B 222] The first count of the declaration stated, that, before and at the time of the making by the defendants of the promises hereinafter mentioned, the plaintiffs carried on the business of millers and mealmen in copartnership, and were proprietors and (ti) Decided in Hilary Vacation. 146 HADLEY V. BAXENDALE 9 EX 342 occupiers of the City Steam-Mills, in the city of Gloucester, and were possessed of a steam-engine, by means of which they worked the said mills, and therein cleaned corn, and ground the same into meal, and dressed the same into flour, sharps, and bran, and a certain portion of the said steam-engine, to wit, the crank shaft of the said steam-engine, was broken and out of lepaii, whereby tbe said steam-engine was prevented ham working, and the plaintiffs were desirous of having a new crank shaft made for the said mill, and had oniered the same of certain peisons trading under the name of W. Joyce & Co , at Greenwich, in the county of Kent, who had contiacted to make the said new shaft foi the plaintiffs , but before they could complete the said new shaft it was necessary that the said bioken shaft should be fotwatded to then works at Greenwich, in oidei that the said new shaft might be made so a? to tit the other parts of the said engine which were not injured, and so that it might be...

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16 firm's commentaries
  • Complex Commercial Litigation Law Review – England and Wales
    • United Kingdom
    • JD Supra United Kingdom
    • 27 January 2021
    ...remedies are subject to the rule against penalties, discussed below.65 Robinson v. Harman (1848) 1 Ex 850.66 See Hadley v. Baxendale (1854) 9 Ex. 341; Victoria Laundry (Windsor) Ltd v. Newman Industries Ltd 4 [1949] 2 KB.528; Koufos v. C. Czarnikow Ltd (The Heron II) [1969] 1 AC 350.67 Hadl......
  • Consequential Loss in Energy Commodity Contracts
    • United Kingdom
    • JD Supra United Kingdom
    • 9 October 2015
    ...should be interpreted in accordance with its natural and ordinary meaning in light of the contract as a whole. 2 Hadley vs Baxendale [1854] 9 Ex.341 3 The Heron II [1969] 1 A.C. 350 4 Transfield Shipping Inc v Mercator Shipping Inc (The Achilleas) [2008] UKHL 48 5 See judgment of Lord Hoffm......
  • Complex Commercial Litigation Law Review – England & Wales
    • United Kingdom
    • JD Supra United Kingdom
    • 10 January 2019
    ...exorbitant. In the 2015 case of Cavendish Square Holding BV v. Talal El Makdessi (El Makdessi) and ParkingEye 44 See Hadley v. Baxendale (1854) 9 Ex. 341; Victoria Laundry (Windsor) Ltd v. Newman Industries Ltd 4 [1949] 2 KB.528; Koufos v. C. Czarnikow Ltd (The Heron II) [1969] 1 AC 350. 45......
  • Work Health & Safety - What's News - 15 April 2014
    • Australia
    • Mondaq Australia
    • 30 April 2014
    ...naturally from any breach or should have been within the contemplation of the employer - Remoteness - Hadley v Baxendale (1854) 9 Ex 341; 156 ER 145 and Baltic Shipping Company v Dillon [1993] HCA 4; (1993) 176 CLR 344 applied. Grocon & Ors v Construction, Forestry, Mining and Energy Un......
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21 books & journal articles
  • Change of position and restitution for wrongs: 'ne'er the twain shall meet'?
    • Australia
    • Melbourne University Law Review Vol. 33 Nbr. 1, April 2009
    • 1 April 2009
    ...that is, to what extent the plaintiff's right to be compensated for losses should be restricted: see Hadley v Baxendale (1854) 9 Ex 341; 156 ER 145; Koufos v C Czarnikow Ltd [1969] 1 AC 350, 393 (Lord Morris); Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64, 91 (Mason CJ and Dawson ......
  • Clark v. Macourt: defective sperm and performance substitutes in the High Court of Australia.
    • Australia
    • Melbourne University Law Review Vol. 38 Nbr. 2, December - December 2014
    • 1 December 2014
    ...on this proposition makes clear that they understood 'position' here not to refer only to Clark's factual situation. (31) (1854) 9 Ex 341; 156 ER 145. (32) Clark v Macourt (2013) 304 ALR 220, 228 [30], Macourt argued that the second limb of Hadley v Baxendale did preclude recovery of replac......
  • Insurance Law Reform by Degrees: Late Payment and Insurable Interest
    • United Kingdom
    • The Modern Law Review Nbr. 80-3, May 2017
    • 1 May 2017
    ...and professional conduct guidance onpleading fraud in civil cases.42 If there is reasonably credible evidence for a38 See n 26 above.39 (1854) 9 Exch 341.40 [2016] UKSC 45.41 See s 13A(2) and (4) respectively.42 The authorities on pleading fraud were reviewed by Lewinson J in John Francis M......
  • Misconceptions about Wrongful Conception
    • United Kingdom
    • The Modern Law Review Nbr. 65-6, November 2002
    • 1 November 2002
    ...(1) itwas unclear how Lord Slynn would apply his ‘assumption of responsibility’ test to72 Therefore the first limb of Hadley vBaxendale (1854) 9 Exch. 341 must be satisfied, and in mostcases also the second.73 See Scuriaga vPowell n 10 above per Watkins J and Thake vMaurice per Peter Pain J......
  • Request a trial to view additional results

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