The limits of Wrotham Park
Developments over the last 40 years in the common law approach to measuring damages had demonstrated the flexibility and pragmatism of the common law in circumstances where the application of its principles would otherwise lead to unjust under-compensation.
A recent decision in the Technology and Construction Court has identified limitations on that flexibility. In Arroyo & Ors v Equion Energia Ltd  EWHC 3150 (TCC), Mr Justice Stuart-Smith held that, in the circumstances of that case, Wrotham Park damages and / or other unquantified claims for General Damages may not be recovered. In particular, such claims could not be made where the claimant had elected to pursue claims for consequential economic damage arising from alleged damage to land and where, by a late application to amend, the claimant had been precluded from recovering compensation for the damage to land by reference to the costs of reinstatement.
This article was first published in the Solicitors Journal.
Click here for the full article by Noel Dilworth.