Lakatoi Universal Pty Ltd v L.A. Walker; Ensile Pty Ltd v Walker Consolidated Investments

Lakatoi Universal Pty Ltd, Ensile Pty Ltd, and another party, collectively referred to as the plaintiffs, were involved in a dispute with L.A. Walker and Walker Consolidated Investments, the defendants. The case was heard by the Supreme Court of South Australia, where the plaintiffs sought damages for loss of chance in a contractual context. The plaintiffs argued that the defendants' actions had reduced their chances of success in a business opportunity. The defendants, on the other hand, contended that the plaintiffs' claims were speculative and not legally enforceable.

The court was tasked with determining the appropriate principles to apply when awarding damages for loss of chance in a contractual dispute. Additionally, the court had to decide whether the plaintiffs' claims were substantiated and if the damages awarded were fair and reasonable. The court also had to address outstanding questions raised in a previous judgement dated 10 March 2000.

The court found that damages for loss of chance could be awarded in contractual disputes, provided that the chance was a real and ascertainable one. The court held that the plaintiffs' claims were substantiated and that the defendants' actions had indeed reduced the plaintiffs' chances of success in the business opportunity. The court determined that the damages awarded should be based on the possibilities and probabilities of what would have happened if the defendants had not acted as they did. The court also addressed the outstanding questions raised in the previous judgement and provided clarity on the principles applicable to awarding costs in relation to Calderbank letters. The court concluded that the plaintiffs were entitled to damages for the loss of chance and ordered the defendants to pay the awarded damages, along with costs.