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CASE NOTE: Contractual Damages ? Remoteness of Damage and Assumption of Liability (BLI Jan 10) |
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Legal Practice Division (LPD) |
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| Abstract The House of Lords in Transfield Shipping Inc v Mercator Shipping Inc (?The Achilleas?) recently considered the law on remoteness of damage. Lord Hoffmann (and Lord Hope) reformulated the traditional Hadley v Baxendale test for remoteness such that a party will be held liable for another party?s loss (even if it was of a nature that fell within the so-called first limb of Hadley v Baxendale), only if it can be established on the evidence through interpreting the contract as a whole that the loss was of a nature that the party had ?assumed responsibility? for. The article discusses the likely implications of The Achilleas case. |
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