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Victoria Laundry (Windsor) Ltd. v. Newman Industries Ltd.

Court of Appeal
2 KB 528 (1949)


Facts

Victoria Laundry (Windsor) Ltd. (Victoria Laundry) (plaintiff) was a commercial launderer and dyer. Victoria Laundry entered into a contract to purchase a boiler from Newman Industries Ltd. (Newman) (defendant). The terms of the contract required Newman to deliver the boiler in early June. From January to April, the parties exchanged letters in which Victoria Laundry expressed its urgent need for the boiler and its intention to put the boiler into use immediately upon delivery. Victoria Laundry hired additional employees in anticipation of the new boiler’s June delivery. However, Newman delivered the boiler on November 8, 20 weeks after the contractual delivery date. Victoria Laundry sued Newman for damages, including damages for lost profits. Specifically, Victoria Laundry argued that if Newman had delivered the boiler when promised, Victoria Laundry would have taken on new customers and would have accepted new dyeing contracts. Newman argued that loss of profits was too remote to be recoverable. The trial court agreed and awarded £110 in certain types of damages, but nothing for loss of profits. Victoria Laundry appealed.

Rule of Law

Issue

Holding and Reasoning (Asquith, J.)

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