Victoria Laundry (Windsor) V Newman Industries
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''Victoria Laundry (Windsor) Ltd v Newman Industries Ltd''
949 Year 949 ( CMXLIX) was a common year starting on Monday (link will display the full calendar) of the Julian calendar. Events By place Byzantine Empire * Arab-Byzantine War: Hamdanid forces under Sayf al-Dawla raid into the theme of Ly ...
2 KB 528 is an English contract law case on the remoteness of damage principle.


Facts

Newman Industries Ltd was meant to deliver a boiler for Victoria Laundry (Windsor) Ltd. The delivery was five months late. As a result of not having enough laundry capacity, Victoria Laundry lost a lucrative contract from the Ministry of Supply. It issued for the ordinary profit that it had forgone through not having the boiler on time. The question was whether it could also claim the extraordinary profit it would have made, had it been able to take advantage of the lucrative Ministry of Supply contract.


Judgment

Asquith LJ in the Court of Appeal held that Newman Industries only had to compensate for the ordinary, not the extraordinary loss of profits. He distinguished (at p 543) losses from “particularly lucrative dyeing contracts” as a different type of loss which would only be recoverable if the defendant had sufficient knowledge of them to make it reasonable to attribute to him acceptance of liability for such losses. The vendor of the boilers would have regarded the profits on these contracts as a different and higher form of risk than the general risk of loss of profits by the laundry.


See also

*''
Hadley v Baxendale ''Hadley & Anor v Baxendale'' ''& Ors'' 854EWHC J70is a leading English contract law case. It sets the leading rule to determine consequential damages from a breach of contract: a breaching party is liable for all losses that the contracting par ...
'' (1854) 9 Exch 341 *''
Koufos v Czarnikow Ltd ''C Czarnikow Ltd v Koufos'' or ''The Heron II'' 9691 AC 350 is an English contract law case, concerning remoteness of damage. The House of Lords held that the " remoteness" test, as a limit to liability, is, in contract, more restrictive than it ...
'' or ''
The Heron II ''C Czarnikow Ltd v Koufos'' or ''The Heron II'' 9691 AC 350 is an English contract law case, concerning remoteness of damage. The House of Lords held that the " remoteness" test, as a limit to liability, is, in contract, more restrictive than it ...
''
969 Year 969 ( CMLXIX) was a common year starting on Friday (link will display the full calendar) of the Julian calendar, the 969th year of the Common Era (CE) and ''Anno Domini'' (AD) designations, the 969th year of the 1st millennium, the 69th ...
1 AC 350 *''
Parsons (Livestock) Ltd v Uttley Ingham & Co Ltd ''Parsons (Livestock) Ltd v Uttley Ingham & Co Ltd'' 978QB 791 is an English contract law case, concerning remoteness of damage. In it, the majority held that losses for breach of contract are recoverable if the type or kind of loss is a likely ...
''
978 Year 978 ( CMLXXVIII) was a common year starting on Tuesday (link will display the full calendar) of the Julian calendar. Events By place Byzantine Empire * Battle of Pankaleia: Rebel forces under General Bardas Skleros are defeated ...
1 QB 791 *''
South Australia Asset Management Co v York Montague ''South Australia Asset Management Corporation v York Montague Ltd'' and ''Banque Bruxelles Lambert SA v Eagle Star Insurance Co Ltd'' 996UKHL 10is a joined English contract law case (often referred to as "SAAMCO") on causation and remoteness o ...
'' 9963 All ER 365 *''
The Achilleas ''The Achilleas'' or ''Transfield Shipping Inc v Mercator Shipping Inc'' 008 UKHL 48 is an English contract law case, concerning remoteness of damage. Facts Transfield Shipping was a charterer. It hired use of Mercator's ship, ''The Achilleas ...
'' 008UKHL 48


Notes

{{reflist, 2 English remedy case law Court of Appeal (England and Wales) cases 1949 in British law 1949 in case law