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2 results

  • Should punitive damages be part of the judicial arsenal in contract cases?

  • Ralph Cunnington
  • Journal:
    Legal Studies / Volume 26 / Issue 3 / September 2006
    Published online by Cambridge University Press:
    02 January 2018, pp. 369-393
    Print publication:
    September 2006

  • This paper challenges the traditional assumption that punitive damages are unavailable for breach of contract. It is shown that Addis v Gramophone provides weak authority for this assumption. The paper considers whether there is a logically coherent argument for retaining punitive damages in tort, while denying them for breach of contract, and it is shown that there is not. The main arguments advanced against punitive damages in civil proceedings are examined and shown to be unpersuasive. Finally, the efficient breach theory is considered and rejected on the ground that it significantly underestimates the costs associated with breach. In conclusion, the paper recommends that punitive damages should be exceptionally awarded to deter outrageous breaches of contract in cases where compensatory damages are inadequate and gain-based damages are unavailable.