Lime Telecom Pty Limited v Powertel Limited [2009] NSWSC 590

Lime Telecom Pty Limited v Powertel Limited [2009] NSWSC 590

The appropriate measure of damages is determined by considering lost gross profit (June 2007 and the year to June 2008) and loss of goodwill as of June 2008, applying accepted expert methodology and an exigency discount due to evidentiary limitations. Despite the inherent difficulty in quantification, the court is obligated to assess and award compensatory damages for the lost commercial advantage, grounding the valuation in probabilities and industry practice, and doing the best it can on the available evidence.

Parties
Plaintiff: Lime Telecom Pty Limited; Defendant: Powertel Limited
Jurisdiction
Australia
Judgment Date
26 June 2009
Procedural Posture
Commercial Contract Dispute / Assessment of Damages After Liability Judgment
Outcome
Award of damages to plaintiff
Legal Topics
Damages for Breach of Contract, Loss of Commercial Opportunity, Goodwill Valuation, Assessment of Lost Profits
Contract Law Commercial Law Damages for Breach of Contract Loss of Commercial Opportunity Goodwill Valuation Assessment of Lost Profits

Case Brief

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Parties

Lime Telecom Pty Limited

Plaintiff

Powertel Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Assessment of Damages After Liability Judgment

Legal Issues

  1. 1 Appropriate principles for awarding damages for breach of commercial contract
  2. 2 Whether and how to quantify loss of gross profit and goodwill
  3. 3 Appropriate approaches to assess damages from lost revenue and customer loyalty

Ratio Decidendi

The appropriate measure of damages is determined by considering lost gross profit (June 2007 and the year to June 2008) and loss of goodwill as of June 2008, applying accepted expert methodology and an exigency discount due to evidentiary limitations. Despite the inherent difficulty in quantification, the court is obligated to assess and award compensatory damages for the lost commercial advantage, grounding the valuation in probabilities and industry practice, and doing the best it can on the available evidence.

Court Disposition

Award of damages to plaintiff

Orders

  • Damages for loss of gross profit during June 2007: $218,726.00
  • Damages for loss of gross profit for year ending 30 June 2008: $423,897.00