In English law, measure of damages refers to the principles and methods used to calculate compensation for losses resulting from breaches of contract or tortious acts.
The measure of damages aims to financially restore the injured party to their original position had the wrongful act or breach not occurred, applying tests like foreseeability, causation, and mitigation.
Clearly understanding the measure of damages helps manage risks, informs negotiations, and guides decisions in disputes, ensuring fair and predictable compensation.
December 20, 2025
A passenger injured in a Hong Kong road accident appealed against damages awarded. The Privy Council considered whether courts should compare awards across jurisdictions and whether future loss of earning capacity required specific pleading and evidence. The appeal succeeded in part, deleting the unpleaded and unproven future earning capacity award....
December 19, 2025
Two British servicemen stationed in Malta were involved in a road accident. The plaintiff sued in England for damages including pain and suffering, which were not recoverable under Maltese law. The Court of Appeal held English law applied to assess damages, awarding £2,303 rather than the £53 available under Maltese...
October 3, 2025
Lenders suffered losses after advancing money on the strength of negligent property valuations and subsequent market falls. The House of Lords held valuers liable only for losses attributable to the overvaluation itself, not for all losses from the lending transaction, establishing the ‘information not advice’ and SAAMCO cap principles on...
October 2, 2025
Performance Cars’ Rolls-Royce was damaged in two minor collisions before repairs were done. The first already required an expensive respray. The Court of Appeal held the second driver was not liable for that cost because his negligence caused no additional need to respray. Facts On 25 February 1960 the defendant,...
September 1, 2025
Wertheim contracted to purchase 3,000 tons of wood pulp from Chicoutimi Pulp Company for delivery between September and November 1900. Delivery was delayed until June 1901. The Privy Council held that damages for late delivery should reflect actual loss sustained, not the theoretical market price difference, as Wertheim had resold...
September 1, 2025
Mr and Mrs Watts purchased a country house relying on a negligent survey report that failed to identify significant defects. The Court of Appeal held that damages for negligent survey should be measured by diminution in value, not cost of repairs, and that damages for distress are limited to physical...
September 1, 2025
Surrey County Council and Mole Valley District Council sold land to Bredero Homes subject to covenants requiring development in accordance with planning permission for 72 houses. Bredero obtained new permission and built 77 houses, making additional profit. The councils sought damages for breach of covenant but, having suffered no financial...
September 1, 2025
Smith was induced by fraudulent misrepresentations to purchase Ferranti shares at an inflated price. The shares later collapsed in value due to an unrelated pre-existing fraud. The House of Lords held that in deceit, the plaintiff may recover all losses directly flowing from the fraudulent transaction, not limited to the...
August 31, 2025
A contractor built a swimming pool 9 inches shallower than contracted. The pool remained safe and functional, with no diminution in value. The House of Lords held that the cost of rebuilding (£21,560) was unreasonable and disproportionate, awarding instead £2,500 for loss of amenity. Facts Mr Forsyth contracted with Ruxley...
August 31, 2025
A motor dealer misrepresented the deposit amount to a finance company to secure a hire-purchase agreement. The customer later dishonestly sold the car and defaulted. The Court of Appeal held that damages under s.2(1) Misrepresentation Act 1967 are assessed as for fraudulent misrepresentation, allowing recovery of all direct losses even...
August 28, 2025
An interior decorator contracted to decorate and furnish a flat for £750. The work was completed but with minor defects costing £55 to remedy. The defendant refused to pay the balance, arguing the contract was entire and not fully performed. The Court held substantial performance entitled the plaintiff to the...
August 28, 2025
The plaintiffs, millers in Gloucester, sent a broken crankshaft via the defendants' carrier service to manufacturers in Greenwich for a replacement. The defendants delayed delivery, causing the mill to remain stopped longer than necessary. The court established the foundational rule for remoteness of damages in contract law. Facts The plaintiffs,...
August 28, 2025
The plaintiffs purchased a hairdressing salon after the defendant falsely represented he would not work at his nearby competing salon. When business declined due to the defendant's continued local practice, the plaintiffs claimed damages for fraudulent misrepresentation. The Court of Appeal confirmed that loss of profits is recoverable in deceit...
August 28, 2025
Mr Doyle was fraudulently induced to purchase an ironmonger's business through false representations about turnover, staffing and trade composition. The Court of Appeal held that damages for deceit should compensate for all actual loss directly flowing from the fraud, not merely contractual expectation loss, increasing damages from £1,500 to £5,500....
August 28, 2025
Mr Bentley purchased a Bentley car from a dealer who represented it had done only 20,000 miles since being fitted with a replacement engine and gearbox. This statement was false. The Court of Appeal held this was a warranty, not merely an innocent misrepresentation, because the dealer was in a...
August 28, 2025
Mr Middleton, an automobile engineer, was granted a licence to use premises for his business. He spent money on improvements. The licensors wrongfully terminated the licence ten weeks early. The Court of Appeal held he was entitled only to nominal damages as he suffered no actual loss, having returned rent-free...
August 28, 2025
A heat exchanger exploded at Beoco's factory due to the plaintiff's own negligence in failing to properly test repairs before resuming operations. Though the first defendant breached warranty in supplying defective equipment, the plaintiff could not recover hypothetical lost profits for repairs never carried out due to the supervening explosion...
August 28, 2025
Facts The appellants, Waterlow & Sons Ltd, were a firm of printers who held a contract with the respondent, the Bank of Portugal, for the exclusive printing of 500-escudo banknotes. A criminal mastermind, Marang, pretending to be an authorised agent of the Bank, deceived Waterlow into printing 580,000 additional banknotes...
August 27, 2025
Facts The plaintiff, Mr. Addis, was employed by the defendant, Gramophone Company Ltd., as their manager in Calcutta, India. His employment contract stipulated a salary of £15 per week and a commission on trade done. The contract was terminable upon six months’ notice. In October 1905, the company gave Mr....
May 21, 2026
National Case Law Archive
May 21, 2026
National Case Law Archive
May 21, 2026
National Case Law Archive