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Scott Equipment Co v Russell Grant Ltd [2005] EWCA Civ 156

Causation – Loss of profits – Machinery – Measure of damages – Production capacity of defective machinery – Connection between breach of contract and productivity – Pecuniary loss – Quantum – Breach of contract – Mitigation – Fish waste drying plant – Equipment

4 March 2005

Summary Where a judge awarded damages for breach of a contract to supply machinery by comparing the actual production capacity of the machinery, with the capacity had it been fit for purpose as required by the contract, the finding that the reduction in use of the machinery during a particular period had no connection with any breach of contract was fatal to the claim for loss of profits in that period. The appellant (S) appealed against the decision ([2004] EWHC 1229) as to the quantum of damages it was ordered to pay the respondent (R) for breach of contract. The judge found that the drying plant for treating waste fish that S had supplied to R was not fit for purpose. He awarded R damages for loss of profits for various periods on the basis that if the plant had been to specification R would have used it for 18 hours a day, six days a week. He made deductions for the actual output of the plant during the relevant periods and took into account whether any shutdow...

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