Jersey Judgment

Denney v Hodge [1973] JJ 2389 (20 March 1973)

Contract Law Damages Remoteness of Damage Guarantee Liability

Citation: [1973] JJ 2389
Status: Judgment
Jurisdiction: Jersey
Posture: Civil / Judgment

More details

Posture: Civil / Judgment

On this page

Professional case brief

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Source document

Holding and result

Loss sustained by a guarantor for a bank guarantee when default occurs is a reasonably foreseeable consequence of giving the guarantee and is recoverable as damages.

Court disposition

claim allowed

Material facts

Parties

Denney

Applicant

Hodge

Respondent

Procedural history

Posture

Civil / Judgment

Questions and positions

Legal issues

01
What losses are recoverable as damages for breach of contract under the rule of remoteness?
02
Is loss sustained by a guarantor for a bank guarantee a reasonably foreseeable consequence of giving the guarantee?

Party arguments

Applicant: Loss sustained by the guarantor upon default is a reasonably foreseeable consequence and should be recoverable as damages.
Respondent: Loss sustained by the guarantor is too remote and not recoverable as damages for breach of contract.

Court’s reasoning

Legal principles

01
Hadley v Baxendale (1854)

Loss is recoverable if it arises naturally and usually from the breach of contract, or in special circumstances known to both parties or reasonably supposed to have been in their contemplation as a result of the breach.

Ratio, limits and disposition

Ratio decidendi

Loss sustained by a guarantor for a bank guarantee when default occurs is a reasonably foreseeable consequence of giving the guarantee and is recoverable as damages.

Court disposition

claim allowed

Source and reliance status

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Source document

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Judgment text

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Source document

Court record

Judgment

[1973] JJ 2389

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BAILII >> Databases >> Jersey Law Reports >> Denney v Hodge [1973] JJ 2389 (20 March 1973) URL: https://www.bailii.org/je/cases/JLR/1973/JLR732389.html Cite as: [1973] JJ 2389 [ New search ] [ Help ] Denney v Hodge 1973 J. J. 2389 (20 March 1973) Contract-damages-remoteness-loss recoverable if arises naturally and usually from breach of contract, or in special circumstances of case known to both parties or reasonably supposed to have been in their contemplation as result of breach, assuming they considered contingency-loss sustained by guarantor for bank guarantee when default occurs reasonably foreseeable consequence of giving guarantee The document you wish to view is available to registered users or can be purchased as a PDF. To purchase this document in PDF format or alternatively to Register to purchase membership go to the Jersey Law website via this link: 1973 J. J. 2389 BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/je/cases/JLR/1973/JLR732389.html

Authorities

Authorities used by the court

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Hadley v Baxendale (1854)

Case cited

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