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Contract – Breach. The claimant, Thai airlines, claimed damages for breach of three contracts made with the defendant for the supply economy class seats for three groups of aircraft. The seats had not been delivered and, among other things, the claimant had sought to mitigate its losses and had allegedly incurred costs, among other things, of just under US$162m by leasing aircraft from another company. The defendant admitted liability, but, on the question of quantum, contended that account should be taken of the benefits the claimant had gained from leasing the aircraft and other mitigating steps it had taken. The Commercial Court held that, in assessing damages for breach of contract, credit had to be given for any monetary benefit, whether chosen or not, which the claimant had received or would receive as a result of an action reasonably taken to mitigate its loss. It ruled, among other things, that the claimant was entitled to recover the lease costs in the sum of US$107m.
Contract – Breach. The claimant, Thai airlines, claimed damages for breach of three contracts made with the defendant for the supply economy class seats for three groups of aircraft. The seats had not been delivered and, among other things, the claimant had sought to mitigate its losses and had allegedly incurred costs, among other things, of just under US$162m by leasing aircraft from another company. The defendant admitted liability, but, on the question of quantum, contended that account should be taken of the benefits the claimant had gained from leasing the aircraft and other mitigating steps it had taken. The Commercial Court held that, in assessing damages for breach of contract, credit had to be given for any monetary benefit, whether chosen or not, which the claimant had received or would receive as a result of an action reasonably taken to mitigate its loss. It ruled, among other things, that the claimant was entitled to recover the lease costs in the sum of US$107m.
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