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 arranging for a place to film and employing a director, designer, and stage manager. Just before filming was to begin, Reed repudiated the contract due to a scheduling conflict. Anglia could not find a substitute actor and thus accepted Reed's repudiation. Anglia subsequently brought an action against Reed. Liability was not disputed. Anglia could not establish what its profits would have been and, therefore, claimed for lost expenditures rather than lost profits. 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 appealed to the Court of Appeal, Civil Division.