(v) Summary of the Key Principles
Since the decision of the House of Lords in Blake various principles have been identified to determine when gain-based remedies can be awarded for breach of contract. It is clearly recognized that such remedies are subsidiary to compensatory remedies, so that they are only available where compensatory remedies are inadequate. This will typically be because the claimant has not suffered any provable loss. The remedy of a full account of profits will only be available in the most exceptional of circumstances. The only clear example of what
Giedo van der Garde BV v Force India Formula One Team Ltd [2010] EWHC 2373 (QB), [508] (Stadlen J).
- 70 [2010] EWHC 424 (Ch), [339]-[343].
- 71 See Jones v Ricoh Ltd [2010] EWHC 1743 (Ch), [89] (Roth J); Luxe Holding Ltd v Midland Resources
Holding Ltd [2010] EWHC 1908 (Ch), [55] (Roth J). 72 See further p 430, above.
- 73 Frischmann Engineering Ltd v Bow Valley Iran Ltd [2009] UKPC 45, [2011] 1 WLR 2370, [49] (Lord Walker). See also Vercoe v Rutland Fund Management Ltd [2010] EWHC 424 (Ch), [292] (Sales J); Force India Formula One Team Ltd v 1 Malaysia Racing Team Sdn Bhd [2012] EWHC 616 (Ch), [384] (Arnold J).
- 74 Giedo van der Garde BV v Force India Formula One Team Ltd [2010] EWHC 2373 (QB), [508] (Stadlen J).
- 75 Vercoe v Rutland Fund Management Ltd [2010] EWHC 424 (Ch), [340] (Sales J).
- 76 Giedo van der Garde BV v Force India Formula One Team Ltd [2010] EWHC 2373 (QB), [533] (Stadlen J).
constitutes such circumstances is the Blake case itself. Whilst it is clear that these circumstances do not require proof of interference with property rights, it appears that the most significant factor is that the defendant is in a relationship with the claimant which can be considered to be very close to a fiduciary relationship, which suggests that the award of an account of profits will be especially rare in respect of the breach of a commercial contract.7 Where the case is not exceptional,77 [1] [2] but orthodox compensatory damages are unavailable, the negotiation measure can be awarded, which is properly characterized as a hybrid remedy, since it has regard both to the claimant’s loss and to the defendant’s gain.
