Darkness on the edge of town? Or is the calculation of consequential losses in dilapidations claims harder than it looks? (Part 1)

Nic Taggart

Journal of Building Survey, Appraisal & Valuation, 2016, vol. 4, issue 3, 130-142

Abstract: This paper addresses one aspect of the quantification of damages for breach of the tenant's covenants to yield up the demised premises in repair at the end of the term: consequential losses. Part one of the paper summarises the different ways of quantifying such damages, shortly restating the contrasting rules in Joyner v. Weeks [1891] 2 QB 31 (CA) and in Ruxley Electronics & Construction v. Forsyth [1996] AC 344 (HL). It also summarises the general law on causation, remoteness of damage, and recovering the reasonable costs of mitigation. Part two of the paper then applies these principles to the specific issues arising in dilapidations cases: loss of rent, the inability to recover service charges, insurance and rates, liability for professional fees and preliminaries, the incidence of VAT, recovering the cost of preparing schedules, recovering the costs of re-certification and liability to pay interest.

Keywords: landlord and tenant; dilapidations; damages; quantification (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jbsav0:y:2016:v:4:i:3:p:130-142

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