Victoria Laundry (Windsor) Ltd. v. Newman Industries Ltd.
Court of Appeal
2 KB 528 (1949)
Victoria Laundry (plaintiff), a commercial launderer and dyer, contracted to buy a boiler from Newman Industries (defendant) for early-June delivery, and exchanged letters emphasizing its urgent need for the boiler and intent to use it immediately, even hiring extra staff in anticipation. Newman delivered the boiler roughly 20 weeks late, in November, and Victoria Laundry sued for damages including lost profits, arguing it would have taken on new laundering customers and dyeing contracts with a timely boiler; Newman argued lost profits were too remote. The trial court agreed with Newman and awarded only £110 in other damages, nothing for lost profits, and Victoria Laundry appealed.
Whether a party may recover loss of profits caused by a breach of contract if the loss was reasonably foreseeable at the time the contract was made.