News

Tue, 4 May 2010

What Is The Correct Measure of damages For a Ruined Holiday?

This was the question which the Court of Appeal recently had to determine in the case of Milner v Carnival PLC (t/a Cunard) [2010] EWCA Civ 389.

The court reaffirmed that compensation can be awarded for diminution in value; consequential pecuniary loss; physical inconvenience/ discomfort; and mental distress. However the basic premise is that the measure of damages is such compensation as will place the claimant, so far as money can do so, in the same position as he/she would have been in had the holiday contract been properly performed.

The court has to try and assess the difference between what the supplier contracted to provide and what was actually provided. Important considerations will be what the claimant actually paid for the holiday and what the nature of the breach was.

The Court of Appeal stressed that contracts for holidays varied enormously on their facts. For more information or advice on this important decision or holiday contract claims generally, please contact Scott Yates.