The following excerpt is from Fidler v. Sun Life Assurance Co. of Canada, [2006] 2 SCR 3, 2006 SCC 30 (CanLII):
53 The second are mental distress damages which do arise out of the contractual breach itself. These are awarded under the principles of Hadley v. Baxendale, as discussed above. They exist independent of any aggravating circumstances and are based completely on the parties’ expectations at the time of contract formation. With respect to this category of damages, the term “aggravated damages” becomes unnecessary and, indeed, a source of possible confusion.
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