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Damages For Mental Distress And Other Intangible Loss In A Commercial Context, Shannon O'Byrne Oct 2005

Damages For Mental Distress And Other Intangible Loss In A Commercial Context, Shannon O'Byrne

Dalhousie Law Journal

As a general rule, contracts law does not permit an award of general damages for mental distress or other intangible loss. There are several rationales for this, including: plaintiffs are to bear their disappointment or upset with mental fortitude; without the rule, courts would be awash in litigation since every breach of contract brings with it some degree of emotional distress; without the rule, plaintiffs may fabricate or exaggerate the degree of their upset; and the rule simply reflects the lack of foreseeability of such loss under Hadley v. Baxendale. Notwithstanding the general rule, courts have awarded mental distress in …


Whiten V. Pilot Ins. Co.: The Unofficial Death Of The Independent Wrong Requirement And Official Birth Of Punitive Damages In Contract, Yehuda Adar Dr. Jan 2005

Whiten V. Pilot Ins. Co.: The Unofficial Death Of The Independent Wrong Requirement And Official Birth Of Punitive Damages In Contract, Yehuda Adar Dr.

Yehuda Adar Dr.

Three years have passed since the Supreme Court of Canada rendered its controversial decision in Whiten v. Pilot Insurance Co. In that case, the Court affirmed an almost unprecedented punitive damage award by a jury of one million dollars against an insurance company. More importantly, the Whiten decision appears to be the first attempt by the Supreme Court to construct a comprehensive set of rules and principles in light of which punitive damages cases should be decided in the future. While the extraordinary monetary sanction upheld by the Court has attracted much attention in legal and commercial circles, it seems …