What are the damages for mental distress that arise as a result of a breach of contract?
Ontario, Canada
The following excerpt is from Blake v. Dominion of Canada General Insurance Co., 2013 ONSC 6069 (CanLII):
Mental distress damages are the second form of aggravated damages that arise as a result of a breach of contract, as per the principle of expectation that the court expanded upon. “They exist independent of any aggravating circumstances, and are based completely on the parties’ expectations at the contract formation. With respect to this category of damages, the term “aggravated damages” becomes unnecessary and, indeed a source of possible confusion.” (Fidler v. Sunlife, para. 53).
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