Concerned with what damage one can actually claim for – the consequences from a breach
Sometimes the law says that the damage is ‘too remote’ - and because of this it is irrecoverable
To claim for damages it must be within the range of remoteness
Judge decides where to draw the line
Two tests of recovery
The Test of Directness (Old test)
Claimant can claim for all the damage which is a direct result of the breach – if you could chain it back to the original breach then you can claim for everything: Re Polemis
No attempt to define directness in the case: most people regarded it as extension of causation – no NAI - unfair on D leading to crushing liability
The Test of Reasonable Foreseeability
The Wagon Mound (No 1) (1961)
TEST OF REASONABLE FORESEEABILITY : all the damage which is reasonably foreseeable from the breach
Fire damage was not reasonably foreseeable – because an expert had been asked and told them not to worry - oil involved was heavy oil – hard to ignite – the expert had in fact been correct
But the pollution damage was reasonably foreseeable
The Same Kind of Harm
Courts vary their approach - some cases taking generously broad – whereas have been more restrictive or narrow view as the kind of harm that is foreseeable
Contrast:
Narrow view
Tremain v Pike: C worked on a farm with cattle – sued his employer because he contracted weil’s disease: one of the ways you get it is through rat’s urine – if you work on a farm then you come into contact with rats urine – when it went to court a very narrow view was taken – not reasonable – if he had been bitten by a rat then he would have been able to claim (apparently rat bite would have been reasonable) but the disease was rare and not reasonable – this decision was heavily criticised -lots of industries knew about the disease
Wide view
Bradford v Robinson Rentals : C sued employer for giving him defective van – windscreen couldn’t be demisted – the only way he could drive was to leave the window open – as a result he got frostbite: court took wide approach to remoteness– any type of damage from coldness was reasonably foreseeable
Margereson v JW Roberts: C was diagnosed with mesothelioma: many years previously when they had been a child, they would regularly play by the D’s factories – thought they were playing with snow but it was in fact white asbestos – D argued that the kind of lung cancer that the plaintiff got was unusual – but courts said ‘is it reasonably foreseeable that a kind of respiratory illness will occur?
Risk of Damage
So long as the type of damage is foreseeable, it will not be too remote even if the chances of it happening are minimal: Overseas Tankship (UK) v Miller Steamship Co; The Wagon Mound (No. 2)
No need to foresee exact way damage occurs
Hughes v Lord Advocate: workers had left manhole up and left it – group of children decided to explore: C was only 8 - played with the lamp and dropped it in the hole, where it exploded, causing severe burns – court felt that damage by fire was foreseeable and , there, there was no need to foresee the exact way in which is occurred (an explosion) – not sure exactly what happened – but either the lamp got caught or he dropped it
Clear that the burns were reasonably foreseeable
But it was argued that how the burns occurred was not reasonably foreseeable
Court – you do not have to foresee exactly how the damage occurred
D said they would only pay damages for a small burn - as this was not reasonably foreseeable – the extent of the damage
Court rejected this too – once the damage is reasonably foreseeable then the D is liable for the full extent of the damages – all the money for the full extent of the damage
Generous decision – courts trying to use mechanisms to get pragmatic justice
Cases which don’t follow the usual route: BLIP CASES
Doughty v Turner Manufacturing CO Ltd: plaintiff suffered burns at work due to an explosion – sued – evidence that the reason for the explosion was that they had been moving a massive asbestos lid to a cauldron – in the cauldron there were chemicals – somehow the lid slid into the cauldron and there was a chemical reaction which led to the explosion – but no one knew there was going to be this reaction – unusual reaction – Court denied claim for damage suffered – said it was not reasonably foreseeable – so not reasonably foreseeable – but said however, if the lid had fallen into the liquid rather than slid – then it would have splashed and then he could have claimed – but because it slid it wasn’t foreseeable - heavily criticised (vs. Hughes)
Crossley v Rawlinson: AA case – plaintiff was an AA control-man – in his patrol vehicle – saw a lorry on fire – had been caught on fire negligently – he tried to help – parked his vehicle – grabbed the fire extinguisher – ran towards the fire, then tripped up on a pothole because he got to the fire – sued the D’s lorry – was his damage (broken arm) reasonably foreseeable – they said no -said that if he had been burned then he could have claimed (said that if he had tripped up and fallen into the fire then he could have claimed – burn damage) – goes vs. the usual way law treats rescuers - but low level case in divisional court
Why the contrast btw Hughes and Doughty?
Both cases decided in the 2 years after The Wagon Mound – judges struggling to implement the new law – or because in Hughes the plaintiff was a child
Today unlikely that a court would follow Doughty – usually interprets type of injury in a broad sense – so the extent of the harm or the exact way in which it was caused poses no problems to claimants – might also explain decision to include psychiatric harm with physical injury under more generous title of ‘personal injury’ - Page v Smith, Simmons v British Steel plc
Occupiers Liability
Jolley v London Borough of Sutton: Jolley (14 years old) and friends saw abandoned boats on Sutton Council – the Council knew about it – Jolley and friends decided to do it up and then put it on the Thames and sail to Cornwall: they all went home to get tools/equipment (including a car jack!) – started working – Jolley decided to go underneath the boat – but someone else jumped on top of it – the jack gave way and the boat fell on Jolley – he broke his back - sued the council: HL – no one should ever underestimate children’s attempts to mimic the behaviour of adults – foreseeable that they would do this and be damaged thereof
Consequential economic loss
Allied Maples Group Ltd v Simmons & Simmons: you can claim so long as there is a real/substantial chance of suffering the loss
Signing of a business contract - he would have made loads of money – but he couldn’t because of the negligence of the solicitors
Nearer you are to fruition then the more likely you will get the money
No need to foresee extent of damage
As in Hughes above - once it is established that the claimant has suffered the same kind of damage as...