Does a loss of profit or damages based on a increase in the capitalization ratio applied in the valuation of shopping centres after July 2004, or are there any potential losses or damages?

Ontario, Canada


The following excerpt is from Kipfinch Developments Ltd. v. Westwood Mall (Mississauga) Limited, 2008 CanLII 44720 (ON SC):

More generally, I also think that lost profit or damages based on an increase in the capitalization ratios applied in the valuation of shopping centres after July 2004 is too remote. It does not fall within either of the two branches of the rule in Hadley v. Baxendale (1854), 9 Ex. 341 at p. 354, 156 E.R. 145: Where two parties have made a contract, which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract, should be such as may fairly and reasonably be considered either arising naturally, i.e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract, as the probable result of the breach of it.

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