May 08, 2018

In Morris-Garner and another (Appellants) v One Step (Support) Ltd (One Step/Respondent) [2018] UKSC 20, the UK Supreme Court has upheld an appeal challenging a party’s claim for “negotiating damages” for breach of contract.  In doing so the Supreme Court took the opportunity to clarify the circumstances in which damages for breach of contract may be assessed by reference to the sum which the claimant might reasonably have demanded from the defendant for the hypothetical release of the obligation which has been breached.  This measure (known as Wrotham Park damages after a case of that name) stands in contrast to the ordinary compensatory assessment of damages as the measure of the financial effect of performance versus non-performance of the contract on the claimant.

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