North Sydney Leagues' Club Ltd v Synergy Protection Agency Pty Ltd (formerly Joseph Merhi Industries Pty Ltd) trading as Synergy Protection Agency [2010] NSWSC 256

Fixed overhead costs should be taken into account and deducted in determining net profit for the calculation of expectation damages in contract; the appropriate measure is the position the innocent party would have been in had the contract been performed, and all expenses necessary to earn that revenue, including a proper share of fixed overheads, must be deducted from lost revenue.

Jurisdiction: Australia
Judgment Date: 07 April 2010
Procedural Posture: Civil / Determination of Separate Question on Damages
Outcome: Separate question 3 answered in the affirmative.
Legal Topics: ['damages' 'expectation Damages' 'net Profit Calculation' 'overheads' 'fixed Costs']

['contract Law'] ['damages' 'expectation Damages' 'net Profit Calculation' 'overheads' 'fixed Costs']

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Procedural Posture

Civil / Determination of Separate Question on Damages

Legal Issues

1 ['Whether fixed overhead costs should be taken into account in determining net profit for expectation damages in a breach of contract claim.']

Ratio Decidendi

Court Disposition

Separate question 3 answered in the affirmative.

Orders

['Fixed overhead costs should be taken into account in determining net profit for the purpose of expectation damages.']