Can a plaintiff recover damages for mental distress arising out of circumstances that aggravate the breach of contract?

Ontario, Canada


The following excerpt is from Tim Ludwig Professional Corporation v. BDO Canada LLP, 2017 ONCA 292 (CanLII):

In Fidler, at para. 52, the court distinguished contract damages for intangible harm from damages for intangible harm arising out of circumstances that aggravate the breach of contract, referring to the latter as “true aggravated damages”: [These damages] are not awarded under the general principle of Hadley v. Baxendale, but rest on a separate cause of action — usually in tort — like defamation, oppression or fraud. The idea that damages for mental distress for breach of contract may be awarded where an object of a contract was to secure a particular psychological benefit has no effect on the availability of such damages. If a plaintiff can establish mental distress as a result of the breach of an independent cause of action, then he or she may be able to recover accordingly. The award of damages in such a case arises from the separate cause of action. It does not arise out of the contractual breach itself, and it has nothing to do with contractual damages under the rule in Hadley v. Baxendale.

Other Questions


What is the difference between damages for mental distress and aggravated damages for breach of contract? (Ontario, Canada)
What are the damages for mental distress that arise as a result of a breach of contract? (Ontario, Canada)
What are the consequences of a breach of contract where a plaintiff is entitled to a third party's "aggravated damages"? (Ontario, Canada)
What is the evidentiary burden on a plaintiff to prove that they suffered mental distress as a result of a breach of contract? (Ontario, Canada)
In an action on the insurance contract, can a plaintiff recover damages for breach of duty of good faith? (Ontario, Canada)
Is a plaintiff entitled to recover damages for breach of contract or fraud? (Ontario, Canada)
Can an employer in a contract of services claim from the contractor on the ground of breach of contract damages? (Ontario, Canada)
What is the test for "unlawful means" in the context of a claim for damages arising out of a breach of contract? (Ontario, Canada)
In what circumstances will a jury award damages for medical malpractice for a plaintiff who sustained long-term brain damage as a result of a motor vehicle accident? (Ontario, Canada)
Does a plaintiff have to prove a breach of fiduciary duty to a third party to recover damages? (Ontario, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.