The Aldgate case could be very important in the context of losses arising from construction and other contracts. It reviews the longstanding principle known to lawyers as the second limb of Hadley v Baxdendale (a 19th century case about a mill owner). Essentially, if you put somebody on notice you are likely to suffer a loss before he enters into a contract with you he can be liable. Otherwise he is only liable for what is described as ordinary (or first limb) losses.
In Aldgate the notice was not express but the contractor had previously worked with the developer so the contractor knew how the developer moved on from one project to another. In that case the contractor had to compensate the developer who due to the contractor’s delays was unable to generate profit from a further site.
The court in Aldgate took a generous view for the Claimant, also exploring the vexed loss of chance question. It is almost akin to a loss of market claim. These claims are traditionally very speculative. Aldgate may open previously closed doors for claimants.
Which ever side of the fence (claimant/defendant) you sit this case may affect you. If you are a defendant the less you know the better and insist on LAD’s. Claimant’s the reverse.
If you think you have or may have similar issues contact Robert Jones