Kayell Pty Limited v Fahey

Kayell Pty Limited (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's entitlement to recover damages for breach of contract against the respondent, Mr Fahey.

The primary legal issue before the Court of Appeal was whether the appellant had suffered loss or damage as a result of the respondent's alleged breach of a contract for the sale of a business. Specifically, the court had to determine if the appellant had established a causal link between the respondent's actions and any quantifiable loss.

The Court of Appeal found that the appellant had failed to prove that it had suffered any loss or damage. The court reasoned that the appellant had not demonstrated that the business was worth less at the time of the contract than it would have been had the respondent's representations been true. Without proof of such a diminution in value, the appellant could not establish a claim for damages for breach of contract. The court applied the principle that damages for breach of contract are intended to put the innocent party in the position they would have been in had the contract been performed.

Consequently, the appeal was dismissed.