''Farley v Skinner''
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UKHL 49is an English contract law case, concerning the measure and availability of damages for distress.
Facts
Mr Farley bought a large estate, Riverside House, in Blackboys, Sussex, not far from Gatwick Airport. It had a croquet lawn, a tennis court, an orchard, a paddock and a swimming pool. It cost £420,000 and after the purchase was complete on 28 February 1991, he spent £125,000 improving it. He also had a flat in London, a house in Brighton and one overseas. He hired Mr Skinner to survey the house, particularly to determine levels of
aircraft noise. Skinner reported that the noise was of acceptable level, whereas in reality, at 6 am the noise was intolerable. Holding patterns formed right above the house. This distressed Mr Farley as he often spent early mornings in his garden.
The trial judge held that Mr Farley had paid no more than someone who knew of the noise, so there was no financial loss, but awarded £10,000 for distress and discomfort.
Court of Appeal
The
Court of Appeal agreed with the defendant's challenge to this ruling, stating that no damages could be awarded for mere inconvenience, and physical discomfort was required to justify damages.
House of Lords
The House of Lords restored the trial judge’s award, because not being put at such inconvenience was an important term.
Lord Scott held that if Mr Farley had known about the aircraft noise he would not have bought the property. He could either claim for being deprived of the contractual benefit (''
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''), or he could claim as having consequential loss on breach of contract (''
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''). He added that if there had been an appreciable reduction in the house’s market value, he could not recover both, which would have been double recovery. Although £10,000 was ‘on the high side’, the value was within the right range.
‘If the cause is no more than disappointment that the contractual obligation has been broken, damages are not recoverable even if the disappointment has led to a complete mental breakdown. But, if the cause of the inconvenience or discomfort is a sensory (sight, touch, hearing, smell, taste) experience, damages can, subject to the remoteness rules, be recovered.’
Referring to the departure of this case from "an ordinary surveyor's contract", Lord Clyde said it was 'the specific provision relating to peacefulness of the property in respect of the aircraft noise which makes the present case out of the ordinary'.
[Lord Clyde]
Farley v. Skinner (2001)
UKHL 49 (11 October 2001), paragraph 42, accessed 31 March 2022 The predominant object test was dispensed with, so it was enough that the term broken was known by both parties to have been important (it did not matter whether the purpose of the contract was to provide peace of mind). So it seems surveyors will not ordinarily be liable when a house is defective and causes distress.
References
See also
{{Clist remedies
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English contract law
English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...
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Addis v Gramophone Co Ltd
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Facts
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QB 233,
973
Year 973 ( CMLXXIII) was a common year starting on Wednesday (link will display the full calendar) of the Julian calendar.
Events
By place
Byzantine Empire
* Spring – The Byzantine army, led by General Melias (Domestic of the S ...
1 All ER 71, where purpose of contract to obtain some mental satisfaction
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''Jackson v Horizon Holidays Ltd'' 975
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1 WLR 1468 is an English contract law case, concerning the doctrine of Privity in English law, Privity. The case would now be partly resolved by the Contracts (Rights of Third Parties) Act 1999 section 1( ...
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Year 975 ( CMLXXV) was a common year starting on Friday (link will display the full calendar) of the Julian calendar.
Events
By place
Byzantine Empire
* Arab–Byzantine War: Emperor John I raids Mesopotamia and invades Syria, using ...
3 All ER 92
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Johnson v Gore Wood & Co
is a leading UK company law decision of the House of Lords concerning (1) abuse of process relating to litigating issues which have already been determined in prior litigation or by way of settlement, (2) estoppel by convention, and (3) reflect ...
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reflective loss
In United Kingdom company law, reflective loss is the loss of individual shareholders that is inseparable from general loss of the corporation, company. The rule against recovery of reflective loss states that there should be no double recovery, so ...
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The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary lega ...
) it was said contract breaking is an ‘incident of commercial life which players in the game are expected to meet with mental fortitude’
English contract case law
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2001 in case law
2001 in British law