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.