Farley v Skinner

Non pecuniary damages are recoverable where a major or important object of the contract was to give pleasure or peace of mind.

Citation
[2001] UKHL 49, [2002] 2 AC 732
Court
House of Lords
Year
2001
Subject
Contract Law
Topic
Remedies

Facts

Mr Farley, a businessman, was thinking of buying a large country house in Sussex, near Gatwick airport, for his retirement. He engaged Mr Skinner, a surveyor, to survey the house, and specifically asked him to investigate whether it would be affected by aircraft noise. Mr Skinner reported that it was unlikely to suffer greatly from such noise. Mr Farley bought the house for £420,000 and spent money on improvements. After moving in, he discovered that the house was close to a navigation beacon where aircraft stacked while waiting to land at Gatwick, and was badly affected by aircraft noise, especially early in the morning. The noise did not reduce the market value of the house.

Legal principle

The House of Lords upheld the trial judge's award of £10,000 for the discomfort and annoyance caused by the aircraft noise. The exception to the rule against damages for distress applies where a major or important object of the contract is to give pleasure, relaxation or peace of mind. It is not necessary that this should be the sole object of the contract. Here, the investigation of aircraft noise was a specific, important part of the surveyor's instructions, and Mr Farley had made clear that it mattered to him. The award was at the very top end of what was appropriate.

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