Common Law Developments on Remoteness of Damages - Post Achilleas Perspective

Abstract

The decision in The Achilleas case had apparently modified the time-tested rule on remoteness of damages. The paper examines various cases before and after the Achilleas judgement and tries to clarify the position of Common Law on Remoteness of damages as it stands to day.

In sum, the decision in subsequent case of Slyvia Shipping helpfully clarifies the uncertainty created by the House of Lords' decision in The Achilleas. The application of The Achilleas decision is now restricted to cases where exceptional circumstances justify a requirement that the party seeking "first limb" damages (which are assumed to arise in the ordinary course of things) also demonstrate that the party in breach of contract assumed responsibility for the loss in question. In the vast majority of cases, claimants will not have to demonstrate that the defendant accepted liability for the loss suffered.

Keywords: Common Law, Remoteness of damages, Achilleas