Does the principle of reasonable expectation apply to damages for mental distress for breach of contract?
Canada (Federal), Canada
The following excerpt is from Fidler v. Sun Life Assurance Co. of Canada, [2006] 2 SCR 3, 2006 SCC 30 (CanLII):
30 Hadley v. Baxendale makes no distinction between the types of loss that are recoverable for breach of contract. The principle of reasonable expectation is stated as a general principle. Nevertheless, subsequent cases purported to rule out damages for mental distress for breach of contract except in certain defined situations.
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