August 28, 2025
Hayes v Dodd [1988] EWCA Civ 8 (07 July 1988)
A solicitor's negligence induced the claimants to purchase a business. The court held that damages were limited to the difference in the property's value at the date of breach. Subsequent trading losses were not recoverable as they were not reasonably foreseeable. Facts The plaintiffs, Mr and Mrs Hayes, purchased a motor repair and scrap business, including the freehold property, for £48,000 in 1979. They relied on the advice of their solicitor, the defendant Mr Dodd. The defendant acted negligently by failing to discover and advise the plaintiffs of a right of way which ran across the rear of the property,
