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Article summary

Construction analysis: The Court of Appeal (CoA) dismissed both an appeal and cross-appeal in relation to the High Court’s calculation of damages in a case where the claimant’s mitigation actions resulted in an increased benefit to the company. The CoA applied the authorities in relation to mitigation losses and gains in a case concerning breach of fiduciary duty and professional negligence, and held that only benefits and losses flowing from a continuous course of conduct to deal with the breaches or negligence should be considered—once mitigation actions are complete, any further decisions by the injured party which incur costs or losses can not be taken into account in any damages claim. The CoA also held that the increased benefit amount must be deducted from the damages payable before applying a loss of a chance percentage. The CoA allowed a cross-appeal on a small point relating to interest.