This chapter is concerned with duties of care that arise when the claimant suffers either property damage or purely financial loss (that is, loss not attendant on physical damage or on any other primary interest recognised in negligence). Again, we find that duties of care are quite expansive with respect to property damage when the claimant owns or possesses the property in question. By contrast, duties of care are restricted with respect to purely financial losses. The most frequently upheld duties in the latter category cover negligent misstatements and the negligent provision of professional services, the scope of which is dictated by application of the Hedley Byrne v Heller framework or some variant of it.
Chapter
4. Duty of care III: property damage and purely financial loss
Chapter
9. Remedies Part I: Compensatory Damages Following a Breach
This chapter explores compensatory damages following a breach of contract. Such damages are aimed at compensating the innocent party for any losses it has suffered that were caused by the breach. However, it cannot expect to receive whatever amount of money it demands and it will usually be faced with a dispute about which losses are claimable. For example, lost profits should be claimable, but what about compensation to cover the costs of correcting a breach? Beyond financial losses, is it possible to claim for injured feelings, harm to reputation, or even loss of enjoyment or disappointment? The chapter examines the detailed rules about the types of loss that are claimable. It then looks at how the courts have developed rules for recognizing a wider range of losses. The chapter also addresses the related issue of parties agreeing in advance the amount of damages to be paid following a breach.
