It was stated in the case of Addis v Gramophone Co Ltd (1909) that
damages would not be awarded for injury to feelings for wrongful
dismissal under contracts of employment. After some uncertainty this was
confirmed by the Court of Appeal in Bliss v S E Thames Regional Health
Authority (1985).
Remoteness of damage
The court has to decide if the expenses for which compensation is claimed
are a direct result of a breach of contract. The principle is generally that
losses are recoverable if they are reasonably within the contemplation of
the parties as a probable result of the breach.
228 Contract law
Jackson v Horizon Holidays (1975)
Damages were given to compensate for disappointment of the whole
family at facilities on a holiday not being as advertised.Chaplin v Hicks (1911)
Damages were awarded to compensate for the possibility of not winning
a beauty competition, when the entry was not processed correctly.
Clearly the actual amount was speculation but the court was prepared to
make an assessment for both loss of earnings and disappointment.Thake v Maurice (1986)
Compensation was given for the suffering of both husband and wife for
a pregnancy and birth following a vasectomy operation because neither
had been warned of the possibility of the operation not being effective.Do you think that all of these awards are reasonable? Are there any circumstances
when you feel that the award of substantial damages is unreasonable?Hadley v Baxendale (1854)
A mill shaft was taken for repair, and it took longer than the expected
time. It was held that losses caused by not being able to use the mill
were foreseeable and therefore damages were awarded.
However, although normal loss of profit is usually foreseeable,
particular losses which could not reasonably have been foreseen by the
defendant will not be recoverable.