DAMAGES, IMPECUNIOSITY AND THE DATE OF ASSESSMENT

Alcoa Minerals of Jamaica Inc v Broderick [2000] 3 WLR 23

The decision of the Privy Council in Alcoa Minerals of Jamaica Inc v Broderick [2000] 3 WLR 23 establishes two important points in relation to the assessment of damages in both contract and tort. The first is that the general rule that damages are assessed as at the date of breach is not a rule without exceptions. The court does have a discretion to depart from it in an appropriate case. The second is that there is no absolute rule to the effect that losses which result from the impecuniosity of the plaintiff are to be ignored when assessing the damages to which the plaintiff is entitled. Provided that the plaintiff has acted reasonably in seeking to mitigate his loss, he may be able to recover losses which were attributable to the fact that he lacked the resources to remedy the defect caused by the default of the defendant at an earlier point in time.