Can a plaintiff obtain aggravated damages for mental distress as a result of a breach of contract?
British Columbia, Canada
The following excerpt is from McIsaac v. Sun Life Assurance Company of Canada, 1999 BCCA 299 (CanLII):
Newbury J.A. concluded that it was unnecessary in such cases to found such an award on an independent tort but that aggravated damages could be awarded for mental distress arising as a result of the breach of the contract. The issue is perhaps even more clearly highlighted in the concurring reasons of Southin J.A. who said that she would uphold the award simply by invoking the rule in Hadley v. Baxendale (1854), 9 Ex. 341.
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