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Sender:
James Edelman
Date:
Sat, 6 Oct 2001 12:33:16 +0100
Re:
Non-compensatory Damages in Australia

 

In Hospitality Group Pty Ltd v Australian Rugby Union Ltd [2001] FCA 1040 (3 August 2001)

http://www.austlii.edu.au/au/cases/cth/federal_ct/2001/1040.html

The Full Federal Court in Australia considered awards described loosely and often interchangeably as 'restitutionary damages', 'account of profits' and 'disgorgement damages'. The context involved a corporation that had, purchased sporting tickets at a premium from a party that had contracted not to. The corporation used those tickets to create hospitality packages (akin to sporting 'boxes').

A majority of the FFC refused to award disgorgement damages (crediting this term to Lionel Smith and using it interchangeably with an account of profits) for a breach of contract. The FFC refused to follow the Blake case and stated that damages for breach of contract in Australia are only compensatory until the High Court pronounces otherwise. They also held that it is not possible to "slot an account of profits into remedies for torts" although they recognised the existence of "restitutionary damages" for torts.

In dissent, Justice Emmett would have awarded an account of profits for the tort of inducing breach of contract because the potential availability of an injunction is "the type of situation that makes an account of profits a just response to prevent THG and ICM from deriving a benefit from its wrongdoing."


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