Addis v Gramophone Company [1909]

Facts: C employed by D at £15/week + commission.  Contract stipulated could be terminated at 6 months’ notice.  D did so, but also trained employer and took steps to remove C as manager.  C claimed mental distress damages for breach of contract.

Issue for the Court: In general, could damages be awarded for loss of reputation or mental distress owing a to a breach of contract?

Held:

Lord Loreborn

§  C entitled to lost salary and commission b/c not allowed to discharge duty as manager which is breach of contract

·      BUT manner of dismissal is irrelevant – no damages awarded for how breach is conducted, only for breach itself.

Lord Atkinson

§  Tort might give some punitive damages for vindictive manner of dismissal.

·      But contract only gives adequate compensation in money for loss he would have received if contract kept.

o   Nothing else.