Damages

Tortious destruction of working chattel - measure of damages - cost of reinstatement not awarded if disproportionate to claimant's reasonable lossSouthampton Container Terminals Ltd v Schiffahrts-gesellschaft 'Hansa Australia' mbH & Co (sued as Hansa Schiffahrts GmbH):CA (Lords Justice Thorpe and Clarke and Mr Justice Holland):3 May 2001The defendants lost control of their vessel, which hit and destroyed the claimants' crane on the quayside.

Liability was admitted.

The judge awarded the claimants damages of 774,990 plus 273,815.52 interest, having assessed their loss by reference to the amount for which the crane, if not destroyed, could have been sold.

The claimants appealed, contending that on the principle of restitutio in integrum they should have been awarded 2.3m as the cost of buying, transporting and installing an equivalent second hand crane.

V V Veeder QC and David Mildon QC (instructed by Sach Solicitors) for the claimants.

Peter Gross QC and Charles Kimmins (instructed by Bentleys Stokes & Lowless) for the defendants.Held, dismissing the appeal, that the principle in actions for breach of contract, that reinstatement should not be ordered where the benefit to the claimant would be out of all proportion to his loss, applied equally to the tortious destruction of a chattel in use; that the overriding principle was that damages should be reasonable as between the parties; and that, since the crane's loss caused inconvenience but no loss of capacity and no serious financial loss, the judge's approach could not be faulted.

(WLR)