1) The document discusses common law remedies in tort law, focusing on damages. Damages are the predominant judicial remedy that courts use to compensate victims of torts.
2) It explains that the goal of damages is to financially restore the injured party to the position they would have been in had the tort not occurred. Different types of damages include nominal, substantial, exemplary, general and special damages.
3) The document provides definitions and examples of different kinds of damages awarded by courts, such as nominal damages which are symbolic awards for legal rights violations without financial harm.
1) The document discusses common law remedies in tort law, focusing on damages. Damages are the predominant judicial remedy that courts use to compensate victims of torts.
2) It explains that the goal of damages is to financially restore the injured party to the position they would have been in had the tort not occurred. Different types of damages include nominal, substantial, exemplary, general and special damages.
3) The document provides definitions and examples of different kinds of damages awarded by courts, such as nominal damages which are symbolic awards for legal rights violations without financial harm.
1) The document discusses common law remedies in tort law, focusing on damages. Damages are the predominant judicial remedy that courts use to compensate victims of torts.
2) It explains that the goal of damages is to financially restore the injured party to the position they would have been in had the tort not occurred. Different types of damages include nominal, substantial, exemplary, general and special damages.
3) The document provides definitions and examples of different kinds of damages awarded by courts, such as nominal damages which are symbolic awards for legal rights violations without financial harm.
By: Salik Aziz Vaince [0313-7575311] Introduction The law of tort is a development of the maxim “Ubi jus Ubi Remedium” there is no wrong without a remedy. A person suffering a legal injury and damage can succeed under law of tort only if his case is covered by recognized Tort. The two principal remedies available to the victim of a tort are damages to compensate for the harm he has suffered and, where appropriate, an injunction to prevent future harm. Damages are the predominant remedy. Certain forms of self-help, such as abatement of a nuisance or self-defence, can be regarded as remedies, but the courts do not encourage this. Meaning of remedy Osborn’s Concise law dictionary By which the violation of a right is prevented, redressed, or compensated. The legal means to recover a right or obtain redress for a wrong. Kinds of Remedies in Tort Judicial Remedies Remedies are said to be judicial when they are granted by the Court in an action filed by the injured party against the wrong doer. Extra Judicial Remedies Meaning: The expression “extra judicial” refers to something which is done without judicial proceedings. Definition: Extra judicial remedies are those which are open to an injured party to adopt when he takes the law into his own hand, and helps himself in the matter. These are available to the party by his own acts alone, e.g. self-defense. Damages Introduction Damages are legal or judicial remedy in the law of tort. The court may grant damages to injured party. Damages in law of tort are usual remedy it is the money compensation which is awarded to the plaintiff after proof of commission of tort against him by the defendant. The fundamental principle applied to the assessment of an award of damages is that the claimant should be fully compensated for his loss. He is entitled to be restored to the position that he would have been in, had the tort not been committed, insofar as this can be done by the payment of money. Livingstone v Rawyards Coal Co (1880) 5 App Cas 25, 39 User damages were awarded for the unauthorised removal of coal from beneath the appellant’s land, even though the site was too small for the appellant to have mined the coal himself. The appellant was
also awarded damages for the damage done to the houses on the surface. If damages are to be awarded at all, the aim must be to put the injured parties into the same position as far as money will allow as if they had not sustained the wrong for which they are being compensated. Lord Blackburne said: ‘I do not think there is any difference of opinion as to its being a general rule that, where any injury is to be compensated by damages, in settling the sum of money to be given for reparation of damages you should as nearly as possible get that sum of money which will put the party who has been injured, or who has suffered, in the same position as he would have been in if he had not sustained the wrong for which he is now getting his compensation or reparation. That must be qualified by a great many things which may arise–such, for instance, as by the consideration whether the damage has been maliciously done, or whether it has been done with full knowledge that the person doing it was doing wrong. There could be no doubt that there you would say that everything would be taken into view that would go most against the wilful wrongdoer–many things which you would properly allow in favour of an innocent mistaken trespasser would be disallowed as against a willful and intentional trespasser on the ground that he must not qualify his own wrong, and various things of that sort.’ Meaning of damages Damages are the compensation in form of money. Oxford concise dictionary A sum of money claimed or awarded in compensation for a loss or on injury. Black’s law dictionary Money claimed by or ordered to be paid, a person as compensation for loss or injury. Definition of damages Damages are the money compensation claimed by the injured party and awarded by the court. Damages are the sum of money which a person wronged is entitled to receive from the wrong does as compensation for the wrong. Compensation for causing loss or injury through negligence or a deliberate act, or a court's estimate or award of a sum as a fine for breach of a contract or of a statutory duty. Objects of damages in law of tort The most important objects of damages in law of tort as under: 1. To compensate a person for the tort committed against him. 2. To penalize the tort feasor for the tort committed by him. 3. To provide machinery of law to settle dispute by lawful means. Importance of remedy of damages Damages are the pecuniary satisfaction which a plaintiff may obtain by success in an action. The court award damages or the injury or the damages by the wrongful act of the defendant. In tort actionable on prove of damage, plaintiff must plead and prove the damage suffered by him from violation of his right by the defendant. Damages are a judicial remedy which is available to a party in certain cases of tort. The nature of the damages is compensatory.
Difference between damage and damages Damage: damage means loss which a person suffers from a trot committed against him loss may be of money, reputation, goodwill, health or service. Damages: Damages is money compensation awarded by the court to the plaintiff. Kinds of damages Damages divided into following kinds: Contemptuous damages Awarded where technically a legal wrong is committed and circumstances disclosed are such that court feels that no action should have been brought, mostly in defamation cases. The claimant may then be at risk on costs, which are normally awarded to the successful party. Nominal damages Nominal damages will be awarded where the claimant proves that the defendant has committed a tort but the claimant has suffered no loss. They are awarded by the court to the plaintiff, not by way of compensation, but by way of recognition of some legal right of his which the defendant has infringed, e.g. trespass. Token damages awarded to redress a violation of a legal right that the law deems necessary to protect, even if there has been no actual harm or monetary loss. By granting nominal damages, the court affirms that a legal right has been violated. While the plaintiff has no right to real damages, the court gives her the right to a judgment because of her legal right has been infringed (Mediana (The) [1900] A C 113 at 116 (H L.), per Lord Halsbury, L.C.). Nominal damages are generally recoverable by a plaintiff who successfully establishes that he has suffered an injury caused by a defendant’s wrongful conduct, but cannot prove a loss that can be compensated. For example, an injured plaintiff who proves that a defendant’s actions caused the injury but fails to submit medical records to show the extent of the injury may be awarded only nominal damages. The amount awarded is generally a small, symbolic sum, such as one dollar. Nominal damages are available whether the action is in contract or tort. Substantial damages They are sum of money which is awarded to the plaintiff as a fair and equitable compensation for the injury suffered by him. Such damages are awarded in great majority of actions in tort. Exemplary damages These are awarded in cases where there has been great injury by the expression of indignation (Anger aroused by some perceived offense or injustice) at the conduct of the defendant whenever he has shown a conscious disregard of the plaintiff’s right. General damages General damages are such as the law will presume to be the natural consequences of the defendant’s acts. General damages are determined by the court as they are not capable of being precisely calculated at the time of trial. They must be stated but no precise figure can be placed on them. General damages
are strictly described as damages which are presumed to flow from torts which are actionable per se (without the need to prove loss or damage). special damages Special damages are losses which can be precisely calculated at the time of trial and are presented in the form of a calculation. Special damages are strictly described as damages which the claimant can prove as part of their action. Therefore, in Negligence a claim for actual loss is classified as special damages. Difference The classification of damages, as general or special, has practical relevance for the calculations relating to interest payments. There is a second and much more commonly used meaning of the distinction between general damages and special damages. In practice, losses that are capable of being calculated with reasonable accuracy are pleaded as 'special damages'. Inexact or unliquidated losses (although they are not presumed and therefore must be pleaded) are compensated by an award of 'general damages'. For example, in a personal injuries action, accrued expenses such as damaged clothing, medical expenses and loss of earnings to the date of trial are special damages. Pain and suffering and loss of amenity (and prospective loss of earnings) are treated as general damages. General Damages (also called “Non-Pecuniary Damages”) Damages for non-monetary losses suffered by a plaintiff. In contrast to special damages, these damages are called “general” because they cannot be assessed exactly. General damages have long been characterized as those that the law presumes to flow from every breach of contract or other invasion of the plaintiff’s rights. In a personal injury action, for instance, examples of such losses suffered include pain, suffering, disfigurement, loss of enjoyment of life and loss of amenities. Non-pecuniary damages are compensation for past, present and future losses, subject to the upper limit for such an award established by the Supreme Court of Canada. In determining fair compensation in the particular circumstances of a case, courts look at such factors as the plaintiff’s age, the nature of the injury, the severity and duration of the pain, the level of the disability and the loss of lifestyle or impairment of life. Aggravated Damages Aggravated damages by definition will generally increase damages assessed under the general rules relating to the assessment of damages. Aggravated damages are compensatory and may only be awarded for that purpose. Aggravated damages are different from punitive damages, which may only be awarded in circumstances where the defendant’s conduct is of such nature that it merits punishment. Aggravated damages will frequently cover conduct that could also be the subject of punitive damages, but the role of aggravated damages remains compensatory. Vorvis v. Insurance Corp. of British Columbia, [1989] 1 S.C.R. 1085 Facts: P was wrongfully dismissed from work. At work supervisor was oppressive and made life horrible. P found work 7 months later. D paid one month severance.
Punitive Damages (also called “Exemplary Damages”) Intended to punish the breaching actors and to deter them from committing future breaches. Punitive damages are awarded not to compensate a plaintiff for injury or loss suffered but to penalize a defendant for particularly egregious, wrongful conduct. At common law, punitive damages can be awarded in any civil suit in which the plaintiff proves that the defendant’s conduct was “malicious, oppressive and high-handed [such] that it offends the court’s sense of decency”: Hill v. Church of Scientology, [1995] 2 SCR 1130 Facts: Manning and Church of Scientology held a press conference to publicly announce criminal contempt proceedings they were starting against Hill, a Crown attorney. Found liable for libel at trial. Issue(s): Is the common law of defamation inconsistent with the guarantee of freedom of expression, and if so, can it be scrutinized? Ratio: Charter values (in private litigation) are balanced differently than Charter rights. There is no formal s.1 analysis. Courts always have power to modify common law to bring into conformity with the Charter. Analysis: Charter is a “restatement of fundamental values” which guide and shape democratic system, so court can incrementally revise the common law to bring in line They will not go further than necessary when evaluating Charter values Most private litigants can do is claim the common law is inconsistent with Charter values, not Charter rights (because rights do not exist absent state action) This avoids subjecting all court order to Charter scrutiny A balancing between principles More flexible than a traditional s.1 analysis Charter values are balanced against the principles underlying the common law Party alleging common law is inconsistent bears onus of proof that: 1. The common law fails to comply with Charter values 2. The common law should be modified Comments: In 2010, court changed the common law of defamation to add the defence of responsible communications in matters of public interest (addressing libel chill). “The test thus limits the award to misconduct that represents a marked departure from ordinary standards of decent behaviour”: Whiten v. Pilot Insurance Co., 2002 SCC 18 In Whiten v. Pilot Insurance Co., the Supreme Court of Canada defined a rational punitive damages award as being proportionate to the blameworthiness of the defendant’s conduct, the vulnerability of the plaintiff, the harm or potential harm directed specifically at the plaintiff, the advantage wrongfully gained by the defendant, and the need for deterrence, all with a view to the other penalties assessed against the defendant because of its misconduct. In that case the Supreme Court set a high-water mark of C$1-million for punitive damages against insurers.
cases by the maxim restitutio in integrum. The plaintiff is entitled to full compensation and is not to be denied recovery of losses which he has sustained.... (T)he basic rule is that it is the net consequential loss and expense which the court must measure. "At the same time, the compensation must be fair to both the plaintiff and the defendant. "In short, the ideal of the law in negligence cases is fully restorative but non-punitive damages. The ideal of compensation which is at the same time full and fair is met by awarding damages for all the plaintiff's actual losses, and no more. The watchword is restoration; what is required to restore the plaintiff to his or her pre-accident position." Mitigation of Damages Introduction The duty to "mitigate damages" means that, in certain circumstances, a person who is harmed by someone else's bad act has a duty to "mitigate" the harm. In plain language, it means that an innocent person who has been harmed must take action to stem the harm and minimize the amount of damages the bad actor has to pay. The duty to mitigate damages also means that an innocent person who does not take action to mitigate may not get full money damages from the wrongdoer. Mitigation may seem to force an innocent person to let the wrongdoer off the hook, but there can be good reasons for it. Of most importance, it can reduce overall harm. Traditionally, the duty to mitigate harm applies in two areas of law - tort and contract law, including employment contracts. For example, suppose that an employer promises an employee a job for one year but, even though the employee does good work, the employer fires the employee. That firing violates the employer's contract with the employee, so the employer must pay the employee for the rest of the year. But the requirement to mitigate means that the employee cannot just sit back and collect back pay. Instead, the innocent employee has a legal obligation to "mitigate" the harm caused by the employer's wrongful action by making a serious search for a new job. Definition The use of reasonable care and diligence in an effort to minimize or avoid injury. Explanation Under the mitigation of damages doctrine, a person who has suffered an injury or loss should take reasonable action, where possible, to avoid additional injury or loss. The failure of a plaintiff to take protective steps after suffering an injury or loss can reduce the amount of the plaintiff's recovery. The mitigation of damages doctrine is sometimes called minimization of damages or the doctrine of Avoidable Consequences. In Tort Law mitigation of damages refers to conduct by the plaintiff that, although not constituting a civil wrong itself, may reduce the plaintiff's recovery. For example, if the victim of an assault used provocative (exciting controversy) words prior to the assault, the words may mitigate the plaintiff's damages. Most states limit mitigation of damages for provocative words to a possible reduction in Punitive Damages, (Inflicting punishment) as opposed to Compensatory Damages.
A tort victim also should act to mitigate damages subsequent to the wrongful acts of another. For instance, assume that the victim in the assault example suffers a broken leg. If the victim refuses to get medical treatment and the leg eventually must be amputated, the defendant may be liable only for the reasonable medical expenses to repair a broken leg. Because a reasonable person would seek medical attention after suffering a broken leg, a court could find it unreasonable to make the defendant pay for additional damage that the victim could have prevented with minimal effort. If it is unreasonable to expect the victim to mitigate damages following the injury, the defendant may be held liable for subsequent injury to the victim that stems from the wrongful act. For example, if the assault victim lives alone in a rural area without a source of transportation, and if the leg requires amputation because the victim could not get to a hospital, the defendant may be held liable not only for a broken leg but for the medical expenses, pain and suffering, and lost wages associated with the amputation. Mitigation of loss A claimant who has had a legal right infringed is entitled to recover damages. The amount (i.e. quantum) of damages awarded by Courts is restricted by two main principles, namely that the loss is not too remote and claimant must mitigate its loss. The law operates so as to not entitle recovery of damages which could have reasonably been mitigated by the claimant. The principles apply equally in breach of contract cases and tort cases. Mitigation of loss is concerned with the claimant's responsibility to avoid avoidable losses by taking all reasonable steps to do so. Claimants are not permitted to stand aside and let damage accrue with the view that it will simply be recovered from the defendant in due course. The claimant is not required to take unreasonable steps or incur unreasonable sums in doing so. Steps which are reasonable will depend upon the circumstances of the case, including the nature and type of (1) contract, (2) the breach, (3) the factual matrix such as the circumstances of the claimant. The fundamental basis is thus compensation for pecuniary loss naturally flowing from the breach; but the first principle is qualified by a second, which imposes on a claimant a duty of taking all reasonable steps to mitigate the loss consequent on the breach, and debars him from claiming any part of the damage which is due to his neglect to take such steps. A claimant should not profit from the incident, as the compensation system aims to restore them to the position they would have been in if the tort had not occurred. Therefore, a claimant cannot claim damages for losses which could have been avoided by taking reasonable steps. The duty to mitigate means that a claimant must take all reasonable steps to minimise their losses. MARCROFT V SCRUTTONS [1954] 1 LLOYD'S REP 395 FACTS: The plaintiff was injured by the defendant's negligence. However, the plaintiff then refused to attend hospital and his injuries worsened. ISSUE: How should the damages be assessed? HELD: The plaintiff had a duty to mitigate his losses and therefore, the losses subsequent to his refusal to attend hospital were not recoverable.
Steps in Mitigation of Loss Whether or not the claimant has mitigated its loss is a question of fact. A claimant's entitlement to recover damages and the role of mitigation may be summarized as follows: Damage suffered as a result of the wrongful conduct where reasonable steps could have been taken to avoid the loss is not recoverable. If the reasonable steps exacerbated (Make worse) the damage caused, the claimant may be entitled to recover the additional damage following the attempt to mitigate. Loss avoided by taking reasonable steps cannot be recovered The claimant is entitled to recover it actual loss, after it has taken steps to mitigate. The defendant is entitled to receive the benefit of mitigation on the part of the claimant. Court will not allow the claimant to recover loss which it does not mitigate. It will be for the Court to decide whether the step would have been in any event, or whether it was taken in mitigation. The latter are not likely to affect the sum of damages payable by the defendant. Expenditure incurred in taking reasonable steps to avoid loss may be recovered Where the claimant fails to mitigate loss, the process of assessment of damages which the claimant is entitled to recover on one view becomes a notional assessment of the claimant's loss. The Court effectively runs a profit and loss account discounting the damages award where the claimant fails to mitigate or does not take all reasonable steps to mitigate the loss. Where the claimant properly takes steps to mitigate, the actual profit and loss account would match the notional profit and loss account. Put another way, the claimant is entitled to its actual loss after mitigation, whether or not the claimant actually takes steps to mitigate loss. Accordingly, a claimant does not have a "duty" to mitigate loss; the law will not allow recovery of loss which has not been mitigated where it would have been reasonable to do so. The requirement to mitigate loss requires the claimant to take any step which a reasonable a prudent person would ordinarily take in the course of his business to mitigate the loss. The law does not allow recovery of loss caused by neglecting to take such steps. The claimant is not entitled to charge the defendant by way of damages with any greater sum than that reasonably needed to expend for the purpose of making good the loss; the claimant would presumably do so to act in its best interests in any event. The claimant is entitled to be as extravagant (Recklessly wasteful) as it pleases but not at the expense of the defendant: Darbishire v Warran (1963) Pearson LJ: The plaintiff cannot recover from the defendant by way of damages any sum greater than what is reasonably necessary for the purpose of making good his loss. Time for Mitigation of Damage The relevant time to mitigate is when the claimant becomes aware of the breach, or ought to have known that the breach had taken place, rather than where (and if) a breach is foreshadowed (Be a sign of something to come). After the breach, a reasonable time is allowed to the claimant to decide what, if anything should be done to mitigate loss. The duty may require him to keep the goods safe and
cease to use them and seek substitute goods, or effect minor repairs to remedy the defects, if that is reasonable and possible in the circumstances of the case. Delay is likely to be permissible where negotiations ensue and while there is a reasonable prospect to that the defendant will repair them. Where there is an anticipatory breach of contract, the duty to mitigate arises when the acceptance of the breach is communicated to the defendant. The onus of proof rests with the defendant to show that the claimant has failed to mitigate its loss, or show that some part of the loss could have been avoided, by showing that the claimant has acted or has not acted or failed to act reasonably by taking certain steps and that by doing so the claimant would have avoided part of the loss suffered. Examples: Steps which are likely to be expected to be taken include: - a buyer obtaining equivalent goods which are reasonably available on the market to obtain goods which there has been non-performance or defective performance, particularly in a rising market for the goods; - a seller is required to make reasonable attempts to sell goods which have been wrongfully rejected by the buyer; - In employment contracts, the employee is required to seek employment elsewhere, having regard of the salary and allowing a reasonable time to gain alternative employment. The effect of mitigation means that damages will not usually be awarded for an extended period of time of unemployment where the skill set is readily in demand in the industry in question; - in contracts for services, a supplier who has been had its contract to supply services repudiated such that there is no requirement to perform the services is required to offer its services elsewhere; damages may be mitigated by the loss of a chance; - where the claimant has delayed obtaining goods in a rising market, the difference between the contract price and the market price is recoverable, on the assumption that the buyer obtained the goods within a reasonable time; - Reasonable steps to remedy loss suffered by defective work. This not to say that the claimant is required to remedy all works, but not go beyond that which is reasonable to minimize loss. - Where a greater profit is obtained by procuring substitute goods, the defendant is entitled to the benefit of that greater profit to pay less damages. - Claimants may well not be under a duty to mitigate by not shipping goods when the defendant has communicated that they will not accept them, where it can do so without the assistance or cooperation of the defendant. Court of Appeal rules on duty to mitigate loss In Lombard North Central Plc v Automobile World (UK) Ltd [2010] EWCA Civ 20, the Court of Appeal addressed the important issue of a party's duty to mitigate its loss. This duty arises in claims in contract and tort, and provides that an injured party cannot recover damages for any loss which could have been avoided by taking reasonable steps. The second limb prohibits unreasonable steps which increase loss. Whilst this case does not create new law, it is a timely restatement by an appellate court of the applicable principles. In particular, the
defendant could not reasonably have known that the oil would ignite. The Supreme Court of New South Wales affirmed, and the defendant appealed to the Privy Council. Issue: Can D’s negligent act impose liability for fire? Ruling: No. The defendant is liable only for damages that are reasonably foreseeable or probable consequences of his breach. Reasoning: While it was admitted that D’s act in discharging the oil was negligent, it was also admitted that D had no way of knowing the oil would be able to burn on the water. The court reversed the original decision because liability for one negligent act can’t create liability for all damages that result from that act. Liability can only be imposed for damages that are foreseeable or natural. The court’s original decision would impose liability for the fire, which was unforeseeable, based on liability for the foreseeable damage that occurred by upholding the decision, which isn’t allowed. Rule: Liability cannot be imposed for unforeseeable damages. Appeal permitted and negligence claim dismissed, and case remanded (for another cause of action). The defendant will be liable for any type of damage which is reasonably foreseeable as liable to happen even in the most unusual case unless the risk is so small that a reasonable man would in the whole circumstances feel justified in neglecting it. Provided that the kind of damage is reasonably foreseeable, it does not matter that the manner of infliction or its extent was unforeseeable Meaning The term remoteness of damage refers to a legal test, which makes a decision whether a tortfeasor should be liable for the results of their actions. This term can also be defined as an additional mechanism of controlling tortious liability. Definition This is a legal test which decides whether a tortfeasor should be liable for the results of their actions. Explanation The extent to which a defendant is liable for the consequences of his wrongful act or omission. In tort there is no single test to determine whether or not damage is too remote. In actions for negligence and other forms of liability based on fault, the defendant is responsible only for damage of the type he should have foreseen, but if damage of that type is foreseeable, it is no defence that the extent of the resulting damage is greater than could have been expected. In torts of strict liability, the defendant may be liable even for unforeseeable damage. Thus the keeper of an animal belonging to a dangerous species is liable for any damage it causes, whether foreseeable or not. Remoteness in English Law In English law, remoteness is a set of rules in both tort and contract, which limits the amount of compensatory damages for a wrong. In negligence, the test of causation not only requires that the defendant was the cause in fact, but also requires that the loss or damage sustained by the claimant was not too remote. As with the policy issues in establishing that there was a duty of care and that that duty was breached, remoteness is
Lord Morris : there was a duty owed by the defenders to safeguard the pursuer against the type or kind of occurrence which in fact happened and which resulted in his injuries, and the defenders are not absolved from liability because they did not envisage the precise concatenation of circumstances which led up to the accident.... The House of Lords have taken a narrow view in interpreting the meaning of similar type. JOLLEY V SUTTON [2000] 3 ALL ER 409 FACTS: The claimant, a child, was severely injured when playing on a boat which had been abandoned on the defendant's land ISSUE: Was the injury too remote? HELD: The House of Lords took a wide view of the type of injury. It was foreseeable that injuries such as bruises or even fractures may be sustained but the claimant suffered severe crushing injuries which left him disabled. Using The Wagon Mound test and following the approach in Hughes v Lord Advocate [1963], the court found that it was not necessary to distinguish between the different types of physical injuries, because the precise nature of the injury does not need to be foreseeable. Egg-shell skull rule The egg-shell skull rule applies in cases where the type of injury is foreseeable but the claimant's special characteristics make the extent of the injury unforeseeable. The rule is also referred to as take your victim as you find him. SMITH V LEECH BRAIN & CO [1962] 2 QB 405 FACTS: The victim suffered a burn on his face after being slightly splashed by molten metal when working for the defendant. The incident would not have happened but for the defendant's negligence. The burn aggravated the victim's unknown pre-existing cancerous condition and he died. ISSUE: Was the victim's death too remote? HELD: The court found that the defendant was liable because although the cancer was an unforeseeable injury the defendant's negligent act led to the cancer developing. The court explicitly followed The Wagon Mound test: the burn injury was foreseeable and the fact that the extent of the injury was not, did not prevent liability. Lord Parker: If a man is negligently run over... it is no answer to the sufferer's claim for damages that he would have suffered less injury... if he had not had an unusually thin skull or an unusually weak heart.... ROBINSON V POST OFFICE [1974] 1 WLR 1176 FACTS: The plaintiff slipped at work, due to the defendant's negligence, and suffered a minor injury to his leg. The plaintiff went to hospital and was given an anti-tetanus injection and then he suffered a severe allergic reaction to the injection. ISSUE: Was the second injury too remote? HELD: The defendant was liable for both injuries. It was reasonably foreseeable that the plaintiff would require medical treatment as a result of the original injury and therefore, the defendant was liable for the consequences of the treatment, despite the reaction being unforeseeably severe.
Claimant's impecuniosity Another element of taking your victim as you find him, relates to the extent that a claimant's lack of resources may mean that he is unable to ameliorate the loss suffered due to the defendant's negligence. LAGDEN V O'CONNOR [2004] 1 ALL ER 277 FACTS: The claimant's car was damaged when the defendant negligently crashed into the parked vehicle. The claimant's car required extensive work and he needed a temporary replacement. The claimant was only able to obtain a hire car on an expensive credit arrangement. ISSUE: Was the credit agreement payment too remote? HELD: The defendant was liable for the cost of credit because the claimant had to take out the expensive agreement as a result of the damage caused by the defendant's negligence. Essentially, the court applied the principle that a defendant must take his victim as he finds him. A SINGLE ACTION AND THE LUMP SUM Single Action A claimant can bring only one action in respect of a single wrong. He cannot maintain a second action based on the same facts merely because the damage turns out to be more extensive than was anticipated (Fetter v Beale (1701) 1 Ld Raym 339, 692). However, there are some exceptions to this. Where a single wrongful action violates two distinct rights the claimant can bring separate actions in respect of each right. Although the rule in Henderson v Henderson (1843) 3 Hare 100 requires the parties to bring the whole case before the court so that all aspects of the case may be finally decided (subject to any appeal) once and for all, in Talbot v Berkshire CC [1994] QB 290 the Court of Appeal gave three examples of special circumstances where the rule would not apply: - (a) where the claimant was unaware of the existence of the claim; - (b) where an agreement was made between the parties holding the action in abeyance; and - (c) where the claimant had not brought his case earlier in reliance on a representation made by the defendant A second exception to the rule is where there is a continuing injury, such as a continuing nuisance or trespass to land. In trespass, being actionable per se, a fresh cause of action arises from day to day, and in nuisance a fresh cause of action arises whenever further damage occurs (Darley Main Colliery v Mitchell (1886) 11 App Cas 127). The final exception is that where a single wrong produces successive and distinct damage, then in torts which are actionable only on proof of damage (as opposed to torts actionable per se), a separate and distinct cause of action will accrue (Mount Albert BC v Johnson [1979] 2 NZLR 234). Lump sum Damages are assessed once and for all must be awarded in the form of a lump sum. This applies both to accrued and prospective losses. The court has no power to require the defendant to make periodical payments (Burke v Tower Hamlets Health Authority [1989] Times Law Reports August 10). An exception of very limited application was accepted in Mullholand v Mitchell [1971] AC 666. Where there is evidence of a change of circumstances after the trial but before an appeal, the Court of Appeal
will admit the new evidence. New evidence was also admitted by the House of Lords in Lim Poh Choo v Camden AHA [1980] AC 174 to 'mitigate the injustices of a lump sum system'. The lump-sum principle, combined with the rule that damages can be recovered once only, causes serious difficulties in actions for personal injuries, particularly where the medical prognosis is uncertain. There is now a procedure for the award of provisional damages in this type of case (CPR, Part 41). Section 32A of the Supreme Court Act 1981 provides that in personal injury cases where there is a 'chance' that, as a result of the tort, the claimant will develop some serious disease or suffer some serious deterioration in his condition, he may be awarded provisional damages assessed on the basis that the disease or deterioration will not occur. If the event subsequently materialises the claimant can then make an application for further damages, which will more accurately compensate his loss. There can only be one such application in respect of a disease or type of injury specified in the original action. A claim for provisional damages cannot include a declaration that the claimant's surviving dependants should be entitled to bring a claim under the Fatal Accidents Act 1976 if the claimant should subsequently die as a result of a deterioration of his physical condition. The Damages Act 1996, s3 now permits dependants to claim in respect of losses not compensated by the initial award of damages. An alternative to provisional damages which is currently available, but little used, is a procedure for separate trials on liability and damages, so that the assessment can be made at a later date when the claimant's medical prognosis is more certain (CPR, Part 3, r3.1(2)(i)). However, this will only be of value where the claimant's medical condition is unstable and needs time to settle. Structured settlements A recent development has been the introduction into this country of the North American concept of a 'structured settlement' (for a definition see the Damages Act 1996, s5). This is a private arrangement between the claimant and the defendant's liability insurer whereby the normal lump-sum payment for future losses is taken in the form of periodic payments. These payments can be varied or 'structured' over a period of time. They can be for a fixed period or until the claimant's death, and they can be index-linked. The payments are financed by the purchase of an annuity by the liability insurer with the money that would have been paid to the claimant as a lump sum. This annuity is held by the insurer on behalf of the claimant, and, as a result of a concession by the Inland Revenue, the payment is not taxable as income in the claimant's hands. They depend upon agreement between the claimant and the defendant's insurers; the court has no power to order such an arrangement without the consent of the parties (Damages Act 1996, s2). Periodic payments made under a structured settlement damages award come within the category of capital treated as income for the purposes of the Income Support (General) Regulations 1987 and will affect a claimant's entitlement to income support (Beattie v Secretary of State for Social Security, 9 April 2001, CA). PERSONAL INJURIES In most actions for personal injuries the claimant suffers two distinct types of loss - pecuniary and non- pecuniary loss. Pecuniary loss is the damage that is capable of being directly calculated in money terms. The commonest example is loss of earnings, both actual and future, but it includes all other
The lost years If the claimant's life expectancy has been reduced by his injuries, can he claim for the earnings that he would have received in the period between his expected date of death and the date that he would have stopped working but for the accident? In Oliver v Ashman [1962] 2 QB 210 the Court of Appeal held that the losses incurred in these 'lost years' were not recoverable, on the basis that a claimant cannot suffer a loss during a period when he will be dead. This rule effectively penalised the claimant's dependants, since their dependency in the 'lost years' would have been met from the claimant's earnings during that period. This consideration led the House of Lords to overrule Oliver in Pickett v British Rail [1980] AC 136. Damages for prospective loss of earnings are now awarded for the whole of the claimant's pre-accident life expectancy, subject to a deduction for the money that the claimant would have spent on his own (not his dependents') living expenses during the last years. Deductions A person suffers personal injury may receive financial support from a number of sources other than tort damages. The most common source is social security but others include, for example, sick pay, pensions, and private insurance and charitable donations. (a) Social security benefits The Social Security Act 1989 introduced a scheme of 'recoupment' of prescribed social security benefits from tortfeasor’s/insurers by the state for accidents or injury occurring on or after 1 January 1989. This system has been further amended by the Social Security (Recovery of Benefits) Act 1997, which applies retrospectively to all settlements made or judgments given on or after 6 October 1997. Benefits are no longer 'recouped'; they are 'recovered' from the compensator. Any 'recoverable benefits' paid to the victim of an accident, injury or disease in the ‘relevant period’ is recoverable from the compensator. (b) Other collateral benefits The proceeds of a personal accident insurance policy taken out by the claimant are ignored, on the basis that otherwise the claimant's foresight and thrift would benefit the defendant (by reducing the damages payable) instead of himself (Bradburn v Great Western Railway (1874) LR 10 Ex 1). Gratuitous payments to the claimant from charitable motives are not deducted, again on the assumption that the donor intended to benefit the claimant rather than the defendant (Redpath v Belfast Railway [1947] NI 167). The House of Lords held in Parry v Cleaver [1970] AC 1 that an occupational disability pension should not be deducted from lost earnings, whether the pension was contributory or non-contributory. The majority took the view that the nature of a pension makes it analogous to private insurance effected by the claimant and so within the general principle of Bradbury v Great Western Railway. Occupational sick pay will be deducted if paid as a term of the claimant's contract of employment (unless there is a contractual obligation to repay the employer on receipt of tort damages: Browning v War Office [1963] 1 QB 750). If the claimant is made redundant as a result of his injuries, in the sense that his disability makes him a more likely candidate for redundancy, then any redundancy payment received will be deducted.
A compensation payment from a statutory compensation scheme for workers who developed an industrial disease (pneumoconiosis) is deductible from damages awarded in respect of the same illness (Ballantine v Newalls Insulation [2000] Times Law Reports June 22). Loss of earning capacity Where a person suffers a permanent disability which affects his ability to earn in the future at the same rate as he earned before his injury, then he may or may not suffer loss of earnings. His loss of earnings may be total if he is unable to work at all, or partial, if he is able to take a less remunerative job. But in some cases, although his injuries have affected his ability to earn, the claimant suffers no loss of earnings because his employer continues to employ him at the same rate of pay. In these circumstances the claimant is entitled to damages for his loss of capacity, if there is a real risk that he could lose his existing employment, because his capacity to find an equivalent job has been reduced (Smith v Manchester Corp (1974) 17 KIR 1. This involves a two-stage test: (1) was there a substantial or real risk that the claimant would lose his present job at some time before the end of his working life? and (2) if so, what is the present value of future risk? There is no real distinction between damages for loss of earning capacity and damages for future loss of earnings. PAIN AND SUFFERING The claimant is entitled to damages for actual and prospective pain and suffering caused by the injury, by a neurosis resulting from the injury, or attributable to any necessary medical treatment. A person who suffers mental anguish because he knows that his life expectancy has been reduced can recover that anguish (Administration of Justice Act 1982, s1(1)(b), restating the common law position). Similarly, a person who has been incapacitated and is capable of appreciating his condition will be compensated for the anguish that this creates (West & Son Ltd v Shepherd [1964] AC 326). LOSS OF FACULTY AND AMENITY The injury itself represents loss of faculty whereas the consequences of the injury on the claimant's activities represents a loss of amenity, e.g., loss of job satisfaction, or loss of leisure activities and hobbies, and loss of family life. It is rarely necessary to distinguish between these heads because the courts usually award a single global sum to cover all the claimant's non-pecuniary losses. The Law Commission's Report on Damages for Personal Injury: Non-Pecuniary Loss (No 257, 1999) suggested that awards for non-pecuniary loss were too low, at least in serious cases and are low in comparison with awards made in defamation cases. In Heil v Rankin [2000] 2 WLR 1173 specially constituted five-judge Court of Appeal accepted the thrust of the Law Commission's proposals, while not accepting that there should be an 'across the board' increased in awards for non-pecuniary loss. The Court considered that there should be a tapered increase in awards, with an increase of about a third for the most serious injuries, but no increase at all for awards which were assessed at under £10,000. The bracket for the most serious injuries should start at £150,000 rising to £200,000 for the very worst cases. These figures will, in future, increase in line with the retail prices index, although the Court accepted that parts of the argument for the tapered increase that they applied was that, over time, the retail prices index does not fully reflect the general increase in prosperity. The public might
reasonably expect that such awards bear some relationship to levels of income and wealth in society, particularly since assessing the level of damages was essentially a 'jury function'. INTEREST ON DAMAGES The court has discretion to award simple interest on all or any part of the damages, and in the case of damages for personal injuries or death exceeding £200 the court must award interest unless there are special reasons for not doing so (Supreme Court Act 1981, s35A). Where the claimant has delayed bringing a claim to trial the court has discretion to disallow all part of the claim for pre-trial interest. Interest on damages for non-pecuniary loss is awarded at a modest rate, currently 2%, from the date of service of the claim form to the date of trial. The reason for this low rate is that a large proportion of nominal interest rates is represented by inflation, and inflation is taken into account when the courts assesses damages for non-pecuniary loss by the general up-rating of 'tariffs' (Wright v British Railways Board [1983] 2 AC 773). Note that this rate may now be increased to 3% in the light of the decision of the House of Lords. DISCRETIONARY DAMAGES The court has discretion to award damages in addition to or in substitution for an injunction (Supreme Court Act 1981, s50). Damages are monetary awards. In in a legal sense, “damages” refers to monetary compensation that is claimed by a person or awarded by a court in a civil action to a person who has been injured or suffered loss because of the wrongful conduct of another party. The Supreme Court of Canada has held: “Damages are a monetary payment awarded for the invasion of a right at common law”. (Canson Enterprises Ltd. v. Boughton & Co. [1991] 3 S.C.R. 534 at para. 39, per La Forest J.) The purpose of damages is, in a tort action, to restore an injured party to the position he was in before being harmed, and, in a contract action, to place the innocent party in the position he would have been in had the contract been performed. Consequently, damages are generally remedial rather than preventive or punitive. Depending on the nature of the loss or injuries, you may have several different remedies available to you, including damages. You will want to consider these various remedies when discussing with your lawyer your legal options. See Some Things You Should Consider before Deciding Whether To Sue and A Client’s Step-by-Step Guide to Commencing a Civil Action. The law of damages is a comprehensive subject about which several texts have been written. Briefly, definitions of various main types of damages are provided below. Compensatory Damages (also called “Actual Damages”) Damages awarded for actual loss, to place the plaintiff in a position that she would have been in had she not suffered the wrong complained of. The aim is to “make the injured party whole again”. Speaking about a tort action, the Supreme Court of Canada has stated: “The general principles underlying our system of damages suggest that a plaintiff should receive full and fair compensation, calculated to place him or her in the same position as he or she would have been in had the tort not been committed, insofar as this can be achieved by a monetary award. This principle suggests that in calculating damages under the pecuniary heads, the measure of the damages should be the plaintiff’s
actual loss.” Ratych v. Bloomer, [1990] 1 S.C.R. 940 at para. 71, per McLachlin J.; see also Livingstone v. Raywards Coal Co., [1911] A.C. 301 at 307 (P.C.). In a breach of contract case, the court might well order the breaching party to compensate the non- breaching party for losses resulting from the breach. A defendant is liable to a plaintiff for all the natural and direct consequences of the defendant’s wrongful act. Remote consequences of a defendant’s act or omission cannot form the basis for an award of compensatory damages. In a breach of contract, the measure of damages is the amount of money that would put the plaintiff in the position he would be in had the contract been performed. Wertheim v. Chicoutimi Pulp Co., [1911] A.C. 301 at 307 (P.C.); Hamilton v. Open Window Bakery Ltd., 2004 SCC 9 (CanLII), [2004] 1 S.C.R. 303; Agribrands Purina Canada Inc. v. Kasamekas, 2011 ONCA 460 at para. 45. The difference between the tort and contract tests is important. In a tort action, the court determines what losses the plaintiff would have avoided has the incident not happened. In a contract action, the court considers the benefits the plaintiff would have gained had the contract been completed. To illustrate, in a personal injury action (tort), the court tries to compensate the plaintiff for injuries and losses. In a sale of goods action (contract), the court awards the plaintiff the profit he would have earned had the transaction been carried out. The two types of compensatory damages for pecuniary loss are: Expectation Damages: in a breach of contract case, for instance, damages intended to cover what the injured party expected to receive from the contract. Calculations are usually straightforward as they are based on the contract itself or market values. Consequential Damages: may be awarded when the loss suffered by a plaintiff is not caused directly or immediately by the wrongful conduct of a defendant, but results from the defendant’s action instead. Two examples follow. In a breach of contract case, for instance, consequential damages are intended to reimburse the aggrieved party for indirect damages besides the contractual loss; for example, loss of business profits resulting from undelivered goods. They must “flow from the breach”, and be reasonably foreseeable upon entering into the contract. In a tort case, for instance, if at the local gym a defendant drops a barbell on the foot of a plaintiff who is a construction worker, the plaintiff could recover consequential damages for the loss of income resulting from the injury. These consequential damages are based on the resulting harm to the plaintiff’s personal income. They are not based on the injury itself, which was the direct result of the defendant’s conduct. Are the Remedies for a Breach Adequate With regards to the overall objectives of the law of tort, do you believe that the remedies available from the courts are adequate? A tort is best defined as ‘harm or a wrong’. Tortuous liability arises from the breach of a duty primarily fixed by law: this duty is towards persons generally and its breach is redressible by an action for unliquidated damages.
With regards to the overall objectives of the law of tort, the remedies available to the claimants are possibly seen as adequate to the wronged party however it could be said that with regards to the tortfeasor, the damages payable will not necessarily affect him like the aims of tort law such as deterrence will be expected to do. Restituto in integrum is one of the primary guiding principles when it comes to awarding damages in the cases of negligence, the Latin term as defined by Lord Blackburn means compensation should be "that sum of money which will put the party who has been injured in the same position as he would have been if he had not sustained the wrong for which he is now getting his compensation or reparation.”. With regards to the death of a loved one caused by the fault of someone is dealt with by the Fatal Accident Act 1976. In terms of claiming for bereavement itself the Act provides for damages of £10,000 to be paid. This could be said to undermine the ‘Restituto in integrum’ principle as it sets out to put the party who was been injured in the same position as he would have been if he had not sustained the wrong. However this award of damages for a loved one is seen as inadequate with regards to the aims of Tort law. Conclusion In conclusion it could be said that with regards to the overall aims of tort law, the remedies available are utilized in the wronged parties favor as much as possible and are therefore seen as adequate. However the remedies of compensatory damage with regards to deterring a tortfeasor from committing a tort could possibly be seen as inadequate to the fact that deterring someone from having an accident in the first place is hard, let alone making sure a person has fear of legal liability when the loss is not coming out of their pocket instead the person relies on an insurance company to deal with the large payout of damages. Class activity Discussion – Why do we need remedies? What makes a good remedy? Teacher-led information on the range of common law remedies. Summary activity – learners read the article in the website opposite and make a presentation to illustrate its key points. Research activity – learners match relevant cases to types of damages such as nominal, contemptuous, exemplary and aggravated. Teacher-led information on the application of compensatory damages in personal injury cases. Learners make a flow chart to show the steps which must be followed in order to achieve a remedy. Discussion – To what extent is it true to say that the rules relating to remedies are necessary but restrict justice? Learners construct a set of facts giving rise to liability in tort. Apply each of the different types of damages and explain the results to which the type would give rise – use figures to support their reasoning. Learners make a presentation of their findings to the rest of the group and see if they agree with the conclusions.
Class activity – learners construct liability in tort, develop a plea in mitigation and let the group be the judge – a key aspect of this is the type and amount of damages to be awarded. Questions from past papers Q1. ‘Traditionally, anyone who was partly responsible for the harm done to them could not recover in tort, but today, damages can be reduced taking account of fault on behalf of the claimant.’ Trace the statutory and case law developments that helped to bring about this change in approach to awards of damages in negligence cases and critically analyse the standard of care issues that may arise as a result. [October/November 2006] Q2. The courts use different approaches when assessing pecuniary and non-pecuniary losses suffered by claimants in tort. Discuss these various approaches. [May/June 2007] Q3. ‘The system of awarding damages in tort does not provide universal justice to claimants.’ Critically evaluate the truth of this statement. [May/June 2008] Q4. The usual reason for awards of damages in tort is to compensate victims. Using case law to support your answer, analyse the circumstances in which non-compensatory awards might be made instead. [May/June 2009] Q5. Pecuniary and non-pecuniary losses are treated differently in tort. Discuss the approaches of courts in assessing compensation claims in tort and explain why they are considered necessary. [October/November 2012] Q6. A principal aim of an award of damages in tort is to compensate a victim in full (restitutio in integrum). Assess the extent to which the courts have been able to achieve this aim. [October/November 2013] Q7. Victims of tort would ordinarily be compensated by an award of damages. Using decided cases to illustrate your response analyse when a court might make a non-compensatory award of damages instead. [May/June 2014] Q8. Examine the development and application of the remoteness of damage principle through case law. Discuss the extent to which you agree with this statement. [October/November 2014]