“Insolvency of Builder/failure to complete the works In the event of i. the insolvency of the Builder and /or ii. the failure of the Builder to complete the works by [31 August 1998 ] then in either such case the Watkins may at their option pay to the builder an amount equal to the value of the works to that date completed (to be fixed in default of agreement by an independent chartered surveyor the identity of such surveyor either to be agreed between the parties or in default of such agreement the surveyor to be nominated by the President for the time being of the RICS who shall act as an expert and whose decision shall be binding) (but minus an allowance to be fixed by the said independent surveyor in favour of the Watkins to compensate them for the inconvenience of them having to complete the works) leaving the Watkins to complete the works thereafter. In the event of the Builder having been paid more than the amount due to him as becomes apparent after the independent surveyor’s valuation, then the excess shall be repaid immediately to the Watkins.”
“Completion date We confirm our verbal agreement waiving the August 31 completion date insofar as it relates to work covered by provisional sums or work held up consequentially to those delays.”
“On the plaintiffs’ case, which for the purposes of this issue may be assumed to be wholly correct, the covenants against competition were intended, and said by the defendants, to be effective but were in truth wholly ineffective. It seems to me clear beyond argument that from the moment of executing each agreement the plaintiffs suffered damage because instead of receiving a potentially valuable chose in action they received one that was valueless.”
“in a transaction in which there are benefits (covenant for repayment and security) as well as burdens (payment of the loan) and the measure of damages is the extent to which the lender is worse off than he would have been if he had not entered into the transaction, the lender suffers loss and damage only when it is possible to say that he is on balance worse off.”
“30. In my opinion, therefore, the question must be decided on principle. A contingent liability is not as such damage until the contingency occurs. The existence of a contingent liability may depress the value of other property, as in Forster v Outred & Co[1982] 1 WLR 86 , or it may mean that a party to a bilateral transaction has received less than he should have done, or is worse off than if he had not entered into the transaction (according to which is the appropriate measure of damage in the circumstances). But, standing alone as in this case, the contingency is not damage.”
“48. In all these cases the claimant has as a result of professional negligence suffered a diminution (sometimes immediately quantifiable, often not yet quantifiable) in the value of an existing asset of his, or has been disappointed (as against what he was entitled to expect) in an asset which he acquires, whether it is a house, a business arrangement, an insurance policy, or a claim for damages.”
“A monetary value could have been put upon the loss at that time though the extent of the loss would have depended on subsequent events and an accurate quantification of loss would have been likely to become clearer with the passage of time.”
“77. It may be that if the facts had been known contemporaneously, some statistical or experience-based assessment could have been made of the likelihood of a claim or claims emerging, and of the fund having eventually to make payments, as a result of Mr Payne being able to continue his scheme of fraud. A similar assessment might be made of the risk of future loss of a physical asset (deeds or valuables) of which a solicitor was failing to take reasonable care, but which had not yet been lost or stolen. But I do not consider that the law should treat purely contingent loss assessed on so remote a basis as sufficiently measurable, in the absence of any change in the claimant's legal position and any diminution in value of any particular asset. Even where negligence brings about a specific transaction and a change in the claimant's legal position, Lord Nicholls observed in the Nykredit (No 2) case[1997] 1 WLR 1627 , 1631C-D in the passage cited in para 73 above, that the mere entry into a transaction under which "Financial loss is possible but not certain" is not sufficient detriment.”