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United Kingdom remotenessconsequential loss

Balfour Beatty Construction (Scotland) Ltd v Scottish Power plc

1994 SC (HL) 20
JurisdictionUnited Kingdom
CourtUK House of Lords
Year1994
StatusBinding authority

Summary

Consequential losses in construction contracts are recoverable only if within ordinary remoteness principles; demolition and reconstruction costs were not within reasonable contemplation.

Key Principle

Consequential losses in construction cases are subject to the ordinary remoteness rule; the contractor was liable for losses arising naturally from the breach including demolition and reconstruction costs.

Area of Law

construction

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