Walsh v Kerr | |
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Court | Court of Appeal of New Zealand |
Full case name | Walsh v Kerr |
Decided | 7 June 1989 |
Citation(s) | [1989] 1 NZLR 490 |
Transcript(s) | High Court judgment |
Court membership | |
Judge(s) sitting | Cooke P, Somers J, Hardie Boys J |
Walsh v Kerr [1989] 1 NZLR 490 is a cited case in New Zealand regarding the remedy of damages for breach of contract. [1] [2]
The Kerrs owned a student pub in Dunedin, advertising that the lease of the hotel was guaranteed by Wilson Neil Corporation.
The Walshes subsequently purchased the hotel for $1.1 million. Subsequent to the sale, the Walshes discovered that the guarantee would lapse upon any sale.
The Walshes sued the Kerrs for loss of value of the hotel, but the High Court ruled that they had suffered no loss refusing to award any damages, apart for the sum of $10 for nominal damages.
The Court of Appeal ruled that they had suffered loss, and awarded them damages of $5,000.
At common law, damages are a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury. To warrant the award, the claimant must show that a breach of duty has caused foreseeable loss. To be recognized at law, the loss must involve damage to property, or mental or physical injury; pure economic loss is rarely recognized for the award of damages.
Negligence is a failure to exercise appropriate care expected to be exercised in similar circumstances.
Liquidated damages, also referred to as liquidated and ascertained damages (LADs), are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach. This is most applicable where the damages are intangible.
Economic loss is a term of art which refers to financial loss and damage suffered by a person which is seen only on a balance sheet and not as physical injury to person or property. There is a fundamental distinction between pure economic loss and consequential economic loss, as pure economic loss occurs independent of any physical damage to the person or property of the victim. It has also been suggested that this tort should be called "commercial loss" as injuries to person or property can be regarded as "economic".
Hart v O'Connor [1985] UKPC 1 is an important case in New Zealand, also relevant for English contract law, regarding mental capacity to enter into contract as well as regarding unconscionable bargains, which made it as far as the Privy Council.
Couch v Branch Investments (1969) Limited [1980] 2 NZLR 314 is an often cited case regarding the temporary forbearance of taking legal action on enforcing a debt as being consideration to enter into a new contract with the creditor. It reinforces the English case of Callisher v Bischoffsheim (1870) LR 5 QB 449.
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