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Anglia Television Ltd. v. Reed
Court of Appeal, Civil Division
3 All E.R. 690 (1971)
The Anglia Television Ltd. (Anglia) (plaintiff) contracted with Robert Reed (defendant) to star in a movie. Prior to entering into the contract, Anglia expended money on the film, including arranged for a place to film and employed a director, designer, and stage manager. Just before filming was to begin, Reed repudiated the contract due to a scheduling conflict, which Anglia accepted. Anglia brought suit against Reed and liability was not disputed. Because Anglia could not establish what its profit would have been and, therefore, claimed for lost expenditures rather than loss of profit. Reed argued that Anglia could not recover expenditures incurred before the parties entered into the contract. The master held that Anglia could recover all expenditures. Reed appeals to the Court of Appeal, Civil Division.
Rule of Law
Holding and Reasoning (Lord Denning, MR.)
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