Hayes & Anor v Dodd [1988] EWCA Civ 8 (07 July 1988)

Hayes & Anor v Dodd [1988] EWCA Civ 8 (07 July 1988)

The proper measure of damages for the solicitors' negligence was the 'no-transaction' method, awarding the plaintiffs all losses reasonably incurred as a result of entering the transaction, less any credits received, provided they acted reasonably in mitigation. Damages for mental distress are not recoverable in a purely commercial contract. The plaintiffs acted reasonably in their mitigation efforts. The damages awarded by the trial judge were adjusted to exclude mental distress and to account for credits on the sale of the maisonette and duplication of interest on plant loss.

Citation
[1988] EWCA Civ 8
Parties
Plaintiffs/respondents: Hayes & Anor; Defendant/appellant: Dodd
Jurisdiction
England and Wales
Judgment Date
07 July 1988
Procedural Posture
Appeal (civil) / Appeal From High Court (queen's Bench Division) to Court of Appeal
Outcome
Appeal allowed in part; damages reduced.
Legal Topics
Measure of Damages, Solicitors' Duty of Care, Mitigation of Loss, Damages for Mental Distress, Assessment of Damages
Professional Negligence Contract Law Tort Law Measure of Damages Solicitors' Duty of Care Mitigation of Loss Damages for Mental Distress Assessment of Damages

Case Brief

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Parties

Hayes & Anor

Plaintiffs/respondents

Dodd

Defendant/appellant

Procedural Posture

Appeal (civil) / Appeal From High Court (queen's Bench Division) to Court of Appeal

Legal Issues

  1. 1 What is the appropriate measure of damages for professional negligence by solicitors in a commercial property transaction?
  2. 2 Are damages for mental distress recoverable in a commercial contract context?
  3. 3 Did the plaintiffs act reasonably in mitigating their loss?

Ratio Decidendi

The proper measure of damages for the solicitors' negligence was the 'no-transaction' method, awarding the plaintiffs all losses reasonably incurred as a result of entering the transaction, less any credits received, provided they acted reasonably in mitigation. Damages for mental distress are not recoverable in a purely commercial contract. The plaintiffs acted reasonably in their mitigation efforts. The damages awarded by the trial judge were adjusted to exclude mental distress and to account for credits on the sale of the maisonette and duplication of interest on plant loss.

Court Disposition

Appeal allowed in part; damages reduced.

Orders

  • Damages reduced to £92,047.81 including interest.
  • Appellant to pay one quarter of respondents' costs in the Court of Appeal.