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R & M Stanfield Enterprises Ltd v Axa Insurance UK plc

In the circumstances, the court assessing damages for six months’ loss of profits following the termination of a salvage contract had to include in the calculation the benefits flowing from the termination of the contract.

7 July 2006

The appellant insurance company (C) appealed against an assessment of damages following the termination of a salvage contract under which the respondent (R) collected cars for C. Under the salvage contract R was obliged to collect and store salvaged motor vehicles as requested by C. Under the contract R ultimately obtained title to the vehicles collected and would, on receipt of a request by C, make payment to C in accordance with an agreed scale. The agreement was terminable on three months’ written notice and provided for the terms to continue upon termination until the final transaction had been completed. C purported to give notice of termination which R refused to accept. R commenced proceedings claiming wrongful termination. C claimed that the dispute had been compromised by an agreement under which C had released to R all the vehicles then held by R for C, with C waiving any charges that R might have to pay. R’s case was that no concluded compromise had been reached. C ha...

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