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

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

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.

Citation
[1973] JJ 2389
Parties
Applicant: Denney; Respondent: Hodge
Jurisdiction
Jersey
Judgment Date
20 March 1973
Procedural Posture
Civil / Judgment
Outcome
claim allowed
Legal Topics
Damages, Remoteness of Damage, Guarantee Liability
Contract Law Damages Remoteness of Damage Guarantee Liability

Case Brief

Summary, issues, holding and outcome

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Parties

Denney

Applicant

Hodge

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 What losses are recoverable as damages for breach of contract under the rule of remoteness?
  2. 2 Is loss sustained by a guarantor for a bank guarantee a reasonably foreseeable consequence of giving the guarantee?

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