The Law of Remedies - Willkommen — … Table of Contents PREFACE XXIII CHAPTER I Remedies for Bad Behaviour in Canadian Contract Law 1 Robert Sharpe A. Introduction 1 B. The Classical

The Law of RemediesNEW DIRECTIONS IN THE COMMON LAW

EDITED BY

JeffBeriymanPROFESSOR OF LAW, FACULTY OF LAW, UNIVERSITY OF WINDSOR

AND OF THE FACULTY OF LAW, UNIVERSITY OF AUCKLAND

A N D

Rick Bigwood

PROFESSOR OF LAW, FACULTY OF LAW, UNIVERSITY OF AUCKLAND

Detailed Table of Contents

PREFACE XXIII

CHAPTER I

Remedies for Bad Behaviour in Canadian Contract Law 1

Robert Sharpe

A. Introduction 1

B. The Classical Model: Market Efficiency 2

C. Current Trends 4

1) Damages for Breach of Fiduciary Duty 5

2) Enhanced Contract Damages for Morally Reprehensible Conduct3) Restitutionary Damages 74) Class Actions and the Goal of Behaviour Modification 85) Punitive Damages for Breach of Contract 9

a) The Law before Whiten and Performance Industries 11b) Whiten and Performance Industries 12c) Decisions after Whiten and Performance Industries 14d) Oppressive or High-Handed Conduct 18e) Claims as between Sophisticated. Commercial Parties 19f) Independent Actionable Wrong 20g) Rationality of the Award 22

h) Punitive Damages—Conclusion 23

D. Conclusion 24

Appendix 26

CHAPTER 2

Reliance Damages for Breach of Contract 33

David McLauchlan

A. Introduction 33

B. The Reliance Interest 35

VII

viii Detailed Table of Contents

C. The English Authorities 41

D. Damages for Wasted Expenditure 44

E. An Illustration: The Amann Case 47

1) The Judgments in Outline 48

2) Lessons from Amann 52

3) Wasted Expenditure and the Calculation of Loss of Bargain

Damages 56

F. The Problem of Pre-Contract Expenditure 59

C. The Categories of Reliance Expenditure 65

1) Ti Leaf Productions Ltd. v. Baikie 68

a) The Facts 68

b) The High Court Decision 69

c) Decision of the Court of Appeal 70

H. Conclusion 75

CHAPTER 3

Fuller and Perdue's Limitations: Opportunities, Performance, and

Quantification 77

Maree Chetw'm

A. Introduction 77

B. Fuller and Perdue's Classification 78

1) Judicial References 80

2) Academic Theories 81

C. The Importance Of Classification 83

D. No Financial Loss: Sharpe And Waddams's Lost Opportunity To

Bargain 84

E. No Financial Loss: Attorney-General v. Blake 87

1) Limitations of Gain-Based Damages in Contract 89

a) Experience Hendrix LLC v. PPX Enterprises Inc 89

b) World Wide Fund for Nature and Anor v. World Wrestling Federation

Entertainment Inc. 91

F. Compensatory or Restitutionary? 92

G. Property Rights 94

Detailed Table of Contents ix

H. The Performance Interest 96

I. Conclusion 102

CHAPTER 4

Damages for Breach of Contracts with Alternative Performances 105

Michael G. Pratt

A. Introduction 105

B. Facts and Issue 708

C. The Trial judgment 109

D. The Court of Appeal Judgments 110

E. The Supreme Court Judgment in

F. Analysis 112

1) The Minimum-Performance Principle 113

2) A Qualification that Swallows the Principle 7173) Speculating About a Past that Never Happened 7204) The Speculation in Practice 724

G. Conclusion 125

CHAPTER 5

Coherence, Non-Pecuniary Loss, and the Construction of Privacy 727

Michael Tilbury

A. Introduction 727

B. Definition and Context 133

1) Delimiting Privacy 734

a) Finding Context 734b) Two First-Instance Australian Decisions 737

2) Delimiting Non-Pecuniary Loss 739a) Psychiatric Damage versus Mental Distress 140b) Mental Distress as Part of an Overall Award 743

C. An Action for Damages for Non-Pecuniary Loss 745

1) Intentional Infliction of Harm 7452) Breach of Confidence 148

a) Availability of Non-pecuniary Loss 749b) Principles of Damages 757

Detailed Table of Contents

c) Conclusion 7533) ANewTort(s) 753

a) Re-engineering Old Doctrine 154b) A Tort Protecting Dignity 758c) Conclusion 160

D. Non-Pecuniary Loss as Damage(s) 161

1) A Differentiation of Non-Pecuniary Loss 7642) Policy Restraints 766

E. Conclusion 768

CHAPTER 6

Beyond Dignity? 777

Grant Hammond

A. Introduction 177

B. What Do We Mean by Human Dignity? 772

1) Human Dignity in Philosophy and Theology 7722) Human Dignity in Legal Discourse 775

3) A Concern 777

C. Assessing Compensation 779

1) Introduction 779

2) Alternatives 779a) No Judicially Awarded Compensation 180b) Corrective Justice 787c) Economic Models 782d) Distributive Justice 783e) Vindication Models 786f) Conventionalism 786

D. From Theory to Practice 790

1) Manga v. Attorney-General 7902) Udompun 1943) Taunoa 7964) The Aloeboetoe Case 200

E. Compensation Revisited 207

1) The High Road 2072) A Road More Frequently Travelled? 205

Detailed Table of Contents xi

3) Fashioning a Package of Remedies 206

F. Conclusion: Beyond Our Present Dignity 206

CHAPTER 7

Redressing Dignitary Injuries and Non-economic Loss in Novel Torts:

Challenges for the Law of Remedies 209

Penelope Watson

A. Introduction 209

B. The Basics: Damages for Non-economic Loss 273

1) A Personal Injury 273

2) Defamation 278

3) Intentional Torts: False Imprisonment, Assault, Battery 220

4) Exemplary and Aggravated Damages 227

C. Protecting Dignitary Injuries in Novel Tort Contexts: Privacy 227

1) Adapt Breach of Confidence or Recognize a New Tort? 227

a) Australia 224

b) United States 229

c) United Kingdom 237

d) New Zealand 234

D. Protecting Dignitary Interests in Novel Tort Contexts: Sexual Battery 236

1) New Uses for an Old Tort 236

2) "Sexual Battery" Actions as Therapeutic Jurisprudence 247

3) Obstacles and Challenges in Battery 244

a) Consent 244

b) Damages 246

4) Borrowing from Equity Again: Breach of Fiduciary Duty 248

a) Canada 249

b) Australia 257

E. Conclusion: Law Institute Recommendations and Challenges for the

Future 257

CHAPTER 8

Holism and Harmony in the Law of Remedies 257

Ken Cooper-Stephenson

A. The Theoretical Underpinnings of Remedies 257

1) Principle and Pragmatism 257

xii Detailed Table of Contents

2) Compartmentalization of Theory 260

3) Corrective Justice, Distributive Justice, and Unjust Enrichment 261

B. Rights-Entitlement and Distributive Justice 264

1) Duty of Care in Negligence 264

2) Constitutional Torts and Human Rights Claims 2683) Morality and Distributive Justice 2774) Just Distribution Filtering Down 2735) Unjust Enrichment of the Defendant Class 275

C. Strict Liability, Social Solidarity, and Unjust Enrichment 277

1) Wrongfulness and Strict Liability 2772) Types of Strict Liability 2783) Internalization of Costs 2834) No-Fault, Social Solidarity, Takings, and Reparations 285

D. Justice and Alternative Dispute Resolution 288

1) Theoretical Questions: Fairness and Freedom 2882) The Rights-Entitlement Backcloth 2903) Justice, ADR, and Critical Legal Studies 2924) The "Justice" of Negotiated Rights 2935) Distributive Justice, Harmony, and Holism 2966) Therapeutic Jurisprudence 298

E. Conclusion: The Boundaries of Remedial Law and Justice 300

1) Complex Distributional Morality 3002) Inside or Outside Law? 302

CHAPTER 9

Remedies: The Key to the Common Law System? 305

Steve Hedley

A. Introduction 305

B. Four Ways of Classifying 306

C. Twentieth-Century Developments 370

D. Modern Academic Debates: Does Structure Matter? 374

E. Politics: Why It Doesn't (Usually) Matter 378

F. Conclusion 327

Detailed Table of Contents xiii

CHAPTER 10

Beyond Compensation: Apology as a Private Law Remedy 323

Robyn Carroll

A. Introduction 323

B. The Meaning of Apology 328

C. Statutory and Case Law Principles 337

1) Orders to Apologize—Equal Opportunity Claims 337a) Australia 337b) Canada 335c) Hong Kong 337

2) Orders to Apologize—Common Law Cases 342a) Breach of Contract 343b) Torts 34s

3) Summary: The Remedial Nature of an Order to Apologize 347a) The Purpose of an Order to Apologize Is to "Redress" the

Wrong 347b) A Statutory Order to Apologize Can Promote Public Policy as well

as Protecting the Plaintiffs Interests 349c) An Order to Apologize Requires a Balancing of Rights and

Freedoms 350

D. Reasons Why the Law Might Want to Order an Apology as a Remedy 352

1) Plaintiff Choice of Remedy 3532) An Apology Can Address the Psychological Needs of the Parties 3543) In Some Circumstances an Order to Apologize Will Redress the

Plaintiffs Loss or Damage Better than an Award of Damages 356a) Overcoming the Difficulty of Assessing Non-pecuniary Loss 357b) An Order to Apologize or Other Forms of Mandatory Order or

Specific Relief May Protect a Plaintiffs Interests More Completelythan a Monetary Award 357

c) An Order to Apologize Can Signify that a Wrong Has BeenCommitted Against the Plaintiff in Circumstances Where NoMonetary Relief Is Awarded 359

4) An Apology Order Can Achieve Purposes Beyond Compensating thePlaintiff 359a) Punishment and Deterrence 367b) Appeasement 362c) Vindication 363

xiv Detailed Table of Contents

d) Normative Functions Other than Deterring Wrongdoing 365

E. Concerns Surrounding the Apology as a Remedy 369

1) The Remedies "Hierarchy" 3692) Floodgates, Subjectivity, and Inflated-Claim Arguments 3703) Freedom of Expression 3704) The Arguments for Damages as Opposed to an Apology Order 377

a) Damages are the Most Appropriate Remedy for Civil Wrongs 377b) Finality 372c) Ongoing Supervision 373d) Severe Consequences of Non-compliance with a Coercive

Order 373e) "Encouragement" rather than Coercion 373

5) Insincerity and Futility 3746) The Concern that an Apology Order will Under-Compensate the

Plaintiff 375

F. In What Circumstances Might the Law Consider Ordering an Apology as a

Remedy? 376

1) Circumstances to be Considered 3772) Which Wrongs? 378

a) As a Statutory Order 380b) As a Remedy for Tort 381c) As a Remedy for Breach of Contract 383

G. Conclusion 384

CHAPTER II

Remedies for Breaches of "Public" Obligations: The Equality Principle Meetsthe Welfare State and the New Constitutionalism 387

Geoff McLay

A. Introduction 387

B. The Equality Principle 389

1) Dice/s Statement of the Equality Principle 389

2) How the Equality Thesis Deals with Administrative Error 390

C. Modern Extension of Principle 394

1) The Continuing Power of the Principle 394

D. Why Impose Liability At All? 396

Detailed Table of Contents xv

1) The Corrective Justice Critique versus Personal Tragedy 3962) The Argument from "Good Government" 3973) Litigation as a Way of Changing the World 4004) The "Class Action" Fear 402

E. The Ineffectiveness Critique—What Do Class Actions Actually

Achieve? 403

1) What We Do Not Know about Government Responses toLiability 404

2) Completing the Equality Project? The Problem of Mandatory Ordersand Enforcement 407a) The Crown Proceedings Act Model and Injunctions 408b) The Dispute in the New Zealand Law Commission 409c) Injunctions, the Equality Principle, and the Public-Private

Distinction 477d) Enjoining Officers as Representatives of the Crown or Their

Employees 477e) The English and Scottish Contempt Cases 473

i) In re M. — Liability Possible as a Minister Rather than anIndividual Acting as a Minister 473

ii) The Scottish Prison Cases—the Possibility of "PublicInjunctions" 474

f) Conclusion—Is This All Consistent with the EqualityPrinciple? 476

F. The Place of Public and Private Law in Welfare Rights—The Care Plan

Decision and Barrett 416

1) The Care Plan Case and the Difficulty of Judicial Control 4762) Fence at the Top of the Cliff or Ambulance at the Bottom? 4793) The Real Problems with Dicey 479

G. Conclusion 427

CHAPTER 12

Addressing the Remedial Interests of Patients after an Adverse Event in

Healthcare: The New Zealand Response 423

Joanna Manning

A. Introduction 423

B. Incidence of Adverse Medical Events and Motivations for Medico-Legal

Action 424

xvi Detailed Table of Contents

C. Communication 428

D. Accountability and Sanction 433

E. Correction 443

F. Compensating Injured Patients: Treatment Injury 449

G. Summary and Conclusion 466

CHAPTER 13

The Crown and Remedies 469

David Wright

A. Introduction 469

B. Torts 470

1) The Old Common Law 470

2) The Statutory Basis for Tort Liability 477

3) Mewett 472

4) Ibbett 474

C. Contracts 475

D. Trade Practices Act Derivative Crown Immunity 480

1) Introduction 480

2) NT Power Generation Pty. Ltd. v. Power # Water Authority 483

3) Baxter 485

E. The Argument for Higher Duties on the Crown 488

F. Conclusion 497

CHAPTER 14

Remedies and Accountability for Unlawful Judicial Action in New Zealand:

Could the Law be Tidier? 493

Bruce V. Harris

A. Introduction 493

B. An Analysis in Terms of Principle 495

C. The Current Law in New Zealand 499

1) Appeal and Judicial Review 499

2) Criminal Liability 500

3) Judicial Immunity 500

4) Baigent's Case Cause of Action 508

Detailed Table of Contents xvii

5) Judicial Conduct Commissioner and Judicial Conduct Panel Act,

2004 575

6) Ex Gratia Payments from the Crown 520

7) Is there a Mismatch between the Current Law and Community

Expectations of Remedies and Accountability? 522

D. Suggestions as to How the Law May Be Developed so as to Facilitate

Improved Access to Remedies and Enhanced Judicial Accountability 524

1) A Possible Future for Judicial Immunity 525

2) The Idea of a Tribunal 527

E. Conclusion 537

CHAPTER 15

A Plea to Reject the United States Supreme Court's Due-Process Review of

Punitive Damages 533

Doug Rendleman

A. Introduction 533

B. The United States Legal System 533

C. United States Punitive Damages 534

D. Post-Verdict Judicial Review 537

E. The Primrose Path of the United States Supreme Court's Decisions 537

F. Critique of the Supreme Court's Trip Down the Wrong Road 547

G. Stay Tuned 545

H. Conclusion or Dead End 546

CHAPTER 16

Remedies for Breach of Fiduciary Duty in Joint Ventures 547

Jessica Palmer

A. Introduction 547

B. The Fiduciary Obligation 548

C. Breach 549

D. Remedies for Fiduciary Breaches in Joint Ventures 550

1) Account of Profits 557a) Strict Accounting of All Profits 553

b) Account of Profits that are Caused by Breach 556

xviii Detailed Table of Contents

c) Account at the Discretion of the Court 560

2) Equitable Compensation 563

a) Generally 563

b) Compensation for Loss of a Chance 565

c) Account of Profits as Compensation 566

3) Proprietary Relief 567

4) Allowance to the Party in Breach 569

E. Conclusion 573

CHAPTER 17

Mareva Orders in Globalized Litigation 575

David Capper

A. Introduction—Important Features of the Modern Litigation Landscape 575

B. Mareva Orders with Extraterritorial Effect 579

1) Third Parties 580

2) Discovery and its Uses 583

C. Mareva Orders in Support of Foreign Litigation 587

1) Civil Jurisdiction and Judgments Act, 1982, Section 25 590

2) Offshore Financial Centres 594

3) Australia 595

4) New Zealand 597

5) Singapore 599

6) Canada 607

7) Conclusion on Mareva Orders in Support of Foreign Litigation 605D. Conclusion 606

CHAPTER l 8

Exporting Your Remedy: A Canadian Perspective on the Recognition andEnforcement of Monetary and Other Relief 609

H. Scott Fairley

A. Introduction 609

B. The New Standard: A Substantial Connection to the Originating

Jurisdiction—And Nothing Much More 677

C. Opening the Door to Recognition and Enforcement of Non-monetaryRelief 614

D. Lower Court Musings: Recognition of Interim Non-monetary Rulings 627

Detailed Table of Contents xix

E. A Growing Need to Rethink the Impeachment Defences 626

F. Remedial Treaty and Statutory Initiatives 637

G. The Hague Convention on Choice of Court Agreements 631

H. Uniform Law Conference of Canada: Uniform Enforcement of Foreign

Judgments Act 635

I. Conclusion and Prospectus 637

CHAPTER 19

Damages in Transnational Tort Litigation: Legislative Restrictions and the

Substance/Procedure Distinction in Australian Conflict of Laws 639

Gary Davis

A. Introduction 639

B. The Leading Cases 640

1) Stevens v. Head 641

2) John Pfeijfer Pty. Ltd. v. Rogerson 6433) Regie Nationale des Usines Renault S.A. v. Zhang 6454) Harding v. Wealands 646

5) Observations 650

C. What Is "Substance" and What Is "Procedure"? 650

D. Substance and Procedure without Controversy 652

E. Equating Remedies with Procedure 654

F. Is There a Role for the Forum Regarding Remedies? 657

G. Two Steps Forward—One Step Back(?) 659

H. Procedure as the Linchpin 662

I. Conclusion 666

CHAPTER 20

The Globalization of Defamation 669

Russell L. Weaver <? David F. Partlett

A. Introduction 669

B. The Globalization of Defamation Standards 677

C. Globalization and the Ability to Sue 677

D. The Internet, Electronic Communications, and the Global Revolution 684

xx Detailed Table of Contents

1) The "Democratization" of Speech Technology 6842) Defamation Litigation against Non-media Defendants 6863) Defamation and Criticism of Government 690

E. Conclusion 693

CHAPTER 21

The Class Action as Sheriff: Private Law Enforcement and Remedial

Roulette 695

Peta Spender

A. Introduction 695

B. A Statement of the Problem 698

1) The Nature of the Class Action and the Role of the PlaintiffLawyer 698

2) "Pursuing Wrongdoers" 7013) "Where the Claims at Issue Are So Small as to be Individually

Untenable" 702a) The Stratospheric Class 702b) The Disappearing Consumer 703c) In-Kind Settlements and the Cy-Pres Remedies 708

4) "The Role of the Plaintiffs Counsel in Exercising Public Rights IsIgnored" 772

C. Theoretical and Conceptual Approaches 773

1) Mapping the Middle Ground 775

D. Finding the Lost Consumer 779

1) The Cases—End-point Consumers of Vitamins 7202) The Cases—End-point Consumers of Tobacco 723

E. Conclusion 725

CHAPTER 22

Class Actions (Representative Proceedings) and the Exercise of the Cy-Pres

Doctrine: Time for Improved Scrutiny 727

JeffBerryman

A. Introduction 727

B. The Cy-pres Doctrine 737

C. The Cy-pres Trust Analogy 735

Detailed Table of Contents xxi

1) Who is the Testator/Settlor? 7352) What Is the Object or Purpose of the Trust? 7353) How Has the Object or Purpose Failed? 7394) How Is the Proposed Cy-Pres Scheme Near to the Original Testator's

Intent? 7475) What Approval System Should Be Put in Place? 743

D. So Much for the Law, What of the Practice? 749

E. Is There a Problem? 753

F. What Can Be Done? 758

G. Conclusion 762

CONTRIBUTORS 763

INDEX 777