East v Maurer [1990]

Court: Court of Appeal

Facts: Maurer falsely assured East that he would cease operating his other hair salon upon selling his salon to East. Relying on this misrepresentation, East purchased the salon. However, Maurer breached his assurance and started a competing salon, leading to substantial trading losses for East. East sued Maurer for deceit, seeking damages for the losses incurred.

Issue: What is the appropriate measure of damages that East is entitled to for deceit?

Held: The Court of Appeal held that East was entitled to recover damages for several categories of loss:

💡 Leveluplaw: The case demonstrates that damages for deceit can encompass a wide range of financial losses beyond the immediate difference in purchase and sale price.