Rosser v Marine Ministerial Holding Corporation

The Supreme Court of New South Wales, Court of Appeal, heard an appeal concerning a dispute between Rosser and the Marine Ministerial Holding Corporation. The core of the disagreement revolved around an unaccepted repudiation of a contract and the subsequent assessment of damages for breach.

The Court of Appeal was required to determine the appropriate principles for assessing damages in circumstances where a contract had been repudiated but the repudiation was not accepted by the innocent party. Specifically, the court considered how to assess damages in lieu of specific performance and the extent to which a discount for vicissitudes should be applied to such damages, particularly when the contract was subject to contingencies.

The Court of Appeal found that the assessment of damages for breach of contract, particularly where specific performance might have been ordered, requires careful consideration of the potential future events that could affect the value of the contractual rights. The court applied established principles of contract law regarding the assessment of damages, emphasizing that the aim is to place the innocent party in the position they would have been in had the contract been performed. However, it also acknowledged the need to discount for contingencies and other vicissitudes that might reduce the ultimate benefit to the innocent party, thereby influencing the quantum of damages awarded.

The appeal was allowed.