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Topic 18- Remedies (Damages for inconvenience and Emotional Distress…
Topic 18- Remedies
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Punitive Damages
While it is generally accepted that there is 'no scope for an award of damages designed to punish a party who deliberately breaches a contract'
- where an action arises in the context of contract AND tort- punitive damages may arise where more emphasis is placed on the tortious aspect of D's conduct
SC reaffirmed reluctance tpwards awarding punitive damages specifically in conext of contract law cases
HOWEVER possibility for taking claim in tort for aggravated damages
McDermott: refers to the retribution interest which may be included with the above head of loss
- Damages based on retribution do not seek to compensate the P
- Rather they seek to punish D or to deter certain conduct
CANADA: Punitive damages can be awarded for breach of contract but only in circumstances where the compensatory award is not deemed sufficient
- Brown v Waterloo Regional Board of Commissioners of Police: Held where the contract has been breached in a high-handed, shocking and arrogant fashion so as to demand condemnation by the court as a deterrent
Whiten v Pilot Insurance:
Facts: P' shouse burned down
- Insurance co agreed in accrodance w insurance contract to pay rent and living expenses of P and her family
- However stopped shortly afterwards and accused P and fam of deliberately burning down house
Held: SC Canada award P and her family 1mill in damages as a deterrent to prevent future insurance co from abusing their relationship with their cliens as a negotiating tactic
Other Types of Loss
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Malik v BCCI:
Facts: P successfully brought action for an action for 'stigma damages'
- P brough action arguing that his employed had breached the implied duty of trust and confidence by operating their business dishonestly and corruptly
- Caused Ps great diff in seeking alternative employment as they suffered damages to their reputation by association
Unjust enrichment
Where a party breaks a contract deliberately in order to take a more lucrative offer the P may be entiled to sue D not only for the losses suffered by P as result of breach
- But also for the profits which D may have made as a resul of the breach
: D may be deterred from breaching contracts in such circumstances
Hickey v Roches Stores (Dublin)
Facts: Ds deliberately breached a contract with P on basis they calculated that by carrying on business themselves they would still make a profit even with the breach
Held; Obiter- when calculating damages in such scenario involving mala fides by D account should be taken not only of P's loss but also the profit which D made
Speculative Damages
Certain cases:
Courts will be placed in a position where they are requierd to speculate as to how much damages should be awarded re events that have not ye taken place
e.g. anticipatory breach
- All that mus be proved is hat a loss of profits is certain
- Courts have demonstrated willingness to award damages in this regard
Grafton Court v Wadson Sales: Stated a court 'should be alert, energetic and of necessary ingenious to assess damages where it is satisfied a significant injury has followed from the breach O'Keefe v Ryanair: Faced difficult task is assessing damages accruing to P due o the loss of her 'free flights for life'
- Had to take into consideration the average cost of the flights together with the frequency with which P would have availed of the flights for the rest of her life
- Assessed 67,500
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