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Lloyd's Maritime and Commercial Law Quarterly

THE SKY’S THE LIMIT: CONTRACTUAL DAMAGES FOR NON-PECUNIARY LOSS

Farley v. Skinner
The question of the extent to which damages can be recovered for non-pecuniary losses suffered as a result of a breach of contract has been debated at length both in the courts1 and in the academic literature.2 Yet it continues to trouble the courts. It has been considered by the House of Lords on no less than three occasions in 2001: in Johnson v. Gore Wood & Co., 3 Johnson v. Unisys Ltd 4 and Farley v. Skinner. 5 Our focus in this comment is solely upon the latter case, in which Lord Steyn was moved to say that the “hearings of what was a comparatively simple case took up an exorbitant amount of time” and that this underlined “the importance, in the quest for coherent and just solutions in such cases, of simple and practical rules”.6 The desire to produce “simple and practical rules” is a laudable one but, in this area of law at least, it has been elusive. The speeches in Farley may take us closer towards this goal but the differences in the reasoning to be found in the speeches mean that we still have some way to go.
The facts of Farley are relatively straightforward. The plaintiff employed the defendant surveyor to survey a “gracious country residence”7 which the plaintiff was contemplating buying as a weekend residence. Given that the property was situated some 15 miles from Gatwick airport, the plaintiff expressly asked the defendant to report on whether or not aircraft noise was likely to be a problem. The defendant did so and reported that it was “unlikely that the property will suffer greatly from such noise, although some planes will

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