Hooper & Anor v Oates

Hooper & Anor v Oates

Where a contract for the sale of land is repudiated by the buyer and the seller takes reasonable steps to mitigate by marketing the property but is unable to sell, damages should be assessed at the date when the seller ceases reasonable attempts to sell, not at the breach date. The breach date rule is not absolute and does not reflect the compensatory principle where there is no immediately available market for land.

Parties
Claimant/respondent: Stephen John Hooper; Claimant/respondent: Linda Anne Hooper; Defendant/appellant: Beverley Charles Oates
Jurisdiction
England and Wales
Judgment Date
20 February 2013
Procedural Posture
Civil Appeal (contract Sale of Land) / Appeal From Assessment of Damages After Breach of Contract
Outcome
Appeal dismissed
Legal Topics
Damages for Breach of Contract, Assessment Date for Damages, Mitigation of Loss, Sale of Land
Contract Law Property Law Damages for Breach of Contract Assessment Date for Damages Mitigation of Loss Sale of Land

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Parties

Stephen John Hooper

Claimant/respondent

Linda Anne Hooper

Claimant/respondent

Beverley Charles Oates

Defendant/appellant

Procedural Posture

Civil Appeal (contract Sale of Land) / Appeal From Assessment of Damages After Breach of Contract

Legal Issues

  1. 1 What is the correct date for assessing damages for breach of contract for sale of land when the buyer fails to complete?
  2. 2 Should damages be measured at the date of breach or at a later date after reasonable attempts to mitigate?

Ratio Decidendi

Where a contract for the sale of land is repudiated by the buyer and the seller takes reasonable steps to mitigate by marketing the property but is unable to sell, damages should be assessed at the date when the seller ceases reasonable attempts to sell, not at the breach date. The breach date rule is not absolute and does not reflect the compensatory principle where there is no immediately available market for land.

Court Disposition

Appeal dismissed

Orders

  • Damages assessed at the value of the property as at the date when the vendors ceased reasonable attempts to sell and moved back in (£495,000).
  • No interest awarded on damages prior to judgment.