SC Confectia SA v Miss Mania Wholesale Ltd

SC Confectia SA v Miss Mania Wholesale Ltd

The insolvency of the sub-buyer Perera was not reasonably contemplatable at the time of contracting and was too remote for Confectia to be liable for Miss Mania's inability to recover the garments. Damages should be assessed at the date of breach, and Miss Mania's loss is limited to the value of the garments it could have recovered and sold, not the full credit note amount.

Parties
Appellant/claimant: SC Confectia SA; Respondent/defendant: Miss Mania Wholesale Ltd
Jurisdiction
England and Wales
Judgment Date
29 October 2014
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Remoteness of Damages, Mitigation of Loss, Assessment of Damages, Allocation of Risk
Contract Law Remoteness of Damages Mitigation of Loss Assessment of Damages Allocation of Risk

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Parties

SC Confectia SA

Appellant/claimant

Miss Mania Wholesale Ltd

Respondent/defendant

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the insolvency of a sub-buyer was an intervening and/or unforeseeable event for purposes of remoteness of damages under Hadley v Baxendale
  2. 2 Whether Miss Mania's inability to recover garments broke the chain of causation
  3. 3 Appropriate date for assessment of damages

Ratio Decidendi

The insolvency of the sub-buyer Perera was not reasonably contemplatable at the time of contracting and was too remote for Confectia to be liable for Miss Mania's inability to recover the garments. Damages should be assessed at the date of breach, and Miss Mania's loss is limited to the value of the garments it could have recovered and sold, not the full credit note amount.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; judge's calculations and order affirmed.