LIABILITY FOR LOSS OF PROFIT ON FUTURE DEVELOPMENTS

In Aldgate Construction Company Ltd v Unibar Plumbing and Heating Ltd [2010] EWHC 1063 (TCC), [2010] All ER (D) 210 (May) property which was under construction by the claimant suffered serious damage in a fire for which the defendant was responsible. The issue before the court concerned the extent of the defendant’s liability. The task of the court was to decide what would, on the balance of probabilities, have happened in terms of the claimant’s activities of purchasing, developing and selling properties if there had been no fire. On the facts Mr Justice Akenhead concluded that the claimant had lost the ability to effect three developments and he awarded the claimant damages of £401,253 as compensation for the loss of these opportunities.