SQE Daily.

Pure economic loss caused by a negligent act: power cut damages calculation (Spartan Steel)

Forgewell Ltd runs a glass-making plant in England around the clock. Contractors digging up a nearby road negligently cut the cable supplying electricity to the plant, and the power is off for 12 hours. A batch of glass in the furnace at the time is ruined, reducing its value by £1,200. Had that batch been completed, Forgewell would have made a profit of £900 on it. Forgewell also proves that it would have made a further profit of £4,500 on new batches it could not start while the power was off. The contractors admit negligence.

Applying the leading authority on economic loss caused by a negligent act, how much is Forgewell likely to recover from the contractors?

Choose one answer to see the reasoning.

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