The Law of Remedies NEW DIRECTIONS IN THE COMMON LAW
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1 The Law of Remedies NEW DIRECTIONS IN THE COMMON LAW EDITED BY JeffBeriyman PROFESSOR OF LAW, FACULTY OF LAW, UNIVERSITY OF WINDSOR AND OF THE FACULTY OF LAW, UNIVERSITY OF AUCKLAND AND Rick Bigwood PROFESSOR OF LAW, FACULTY OF LAW, UNIVERSITY OF AUCKLAND
2 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 Conduct 3) Restitutionary Damages 7 4) Class Actions and the Goal of Behaviour Modification 8 5) Punitive Damages for Breach of Contract 9 a) The Law before Whiten and Performance Industries 11 b) Whiten and Performance Industries 12 c) Decisions after Whiten and Performance Industries 14 d) Oppressive or High-Handed Conduct 18 e) Claims as between Sophisticated. Commercial Parties 19 f) Independent Actionable Wrong 20 g) 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
3 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
4 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 717 3) Speculating About a Past that Never Happened 720 4) 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 734 b) Two First-Instance Australian Decisions 737 2) Delimiting Non-Pecuniary Loss 739 a) Psychiatric Damage versus Mental Distress 140 b) Mental Distress as Part of an Overall Award 743 C. An Action for Damages for Non-Pecuniary Loss 745 1) Intentional Infliction of Harm 745 2) Breach of Confidence 148 a) Availability of Non-pecuniary Loss 749 b) Principles of Damages 757
5 c) Conclusion 753 3) ANewTort(s) 753 a) Re-engineering Old Doctrine 154 b) A Tort Protecting Dignity 758 c) Conclusion 160 D. Non-Pecuniary Loss as Damage(s) 161 1) A Differentiation of Non-Pecuniary Loss 764 2) 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 772 2) Human Dignity in Legal Discourse 775 3) A Concern 777 C. Assessing Compensation 779 1) Introduction 779 2) Alternatives 779 a) No Judicially Awarded Compensation 180 b) Corrective Justice 787 c) Economic Models 782 d) Distributive Justice 783 e) Vindication Models 786 f) Conventionalism 786 D. From Theory to Practice 790 1) Manga v. Attorney-General 790 2) Udompun 194 3) Taunoa 796 4) The Aloeboetoe Case 200 E. Compensation Revisited 207 1) The High Road 207 2) A Road More Frequently Travelled? 205
6 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
7 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 268 3) Morality and Distributive Justice 277 4) Just Distribution Filtering Down 273 5) Unjust Enrichment of the Defendant Class 275 C. Strict Liability, Social Solidarity, and Unjust Enrichment 277 1) Wrongfulness and Strict Liability 277 2) Types of Strict Liability 278 3) Internalization of Costs 283 4) No-Fault, Social Solidarity, Takings, and Reparations 285 D. Justice and Alternative Dispute Resolution 288 1) Theoretical Questions: Fairness and Freedom 288 2) The Rights-Entitlement Backcloth 290 3) Justice, ADR, and Critical Legal Studies 292 4) The "Justice" of Negotiated Rights 293 5) Distributive Justice, Harmony, and Holism 296 6) Therapeutic Jurisprudence 298 E. Conclusion: The Boundaries of Remedial Law and Justice 300 1) Complex Distributional Morality 300 2) 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
8 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 337 a) Australia 337 b) Canada 335 c) Hong Kong 337 2) Orders to Apologize Common Law Cases 342 a) Breach of Contract 343 b) Torts 34s 3) Summary: The Remedial Nature of an Order to Apologize 347 a) The Purpose of an Order to Apologize Is to "Redress" the Wrong 347 b) A Statutory Order to Apologize Can Promote Public Policy as well as Protecting the Plaintiffs Interests 349 c) 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 353 2) An Apology Can Address the Psychological Needs of the Parties 354 3) In Some Circumstances an Order to Apologize Will Redress the Plaintiffs Loss or Damage Better than an Award of Damages 356 a) Overcoming the Difficulty of Assessing Non-pecuniary Loss 357 b) An Order to Apologize or Other Forms of Mandatory Order or Specific Relief May Protect a Plaintiffs Interests More Completely than a Monetary Award 357 c) An Order to Apologize Can Signify that a Wrong Has Been Committed Against the Plaintiff in Circumstances Where No Monetary Relief Is Awarded 359 4) An Apology Order Can Achieve Purposes Beyond Compensating the Plaintiff 359 a) Punishment and Deterrence 367 b) Appeasement 362 c) Vindication 363
9 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" 369 2) Floodgates, Subjectivity, and Inflated-Claim Arguments 370 3) Freedom of Expression 370 4) The Arguments for Damages as Opposed to an Apology Order 377 a) Damages are the Most Appropriate Remedy for Civil Wrongs 377 b) Finality 372 c) Ongoing Supervision 373 d) Severe Consequences of Non-compliance with a Coercive Order 373 e) "Encouragement" rather than Coercion 373 5) Insincerity and Futility 374 6) 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 377 2) Which Wrongs? 378 a) As a Statutory Order 380 b) As a Remedy for Tort 381 c) As a Remedy for Breach of Contract 383 G. Conclusion 384 CHAPTER II Remedies for Breaches of "Public" Obligations: The Equality Principle Meets the 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
10 xv 1) The Corrective Justice Critique versus Personal Tragedy 396 2) The Argument from "Good Government" 397 3) Litigation as a Way of Changing the World 400 4) 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 to Liability 404 2) Completing the Equality Project? The Problem of Mandatory Orders and Enforcement 407 a) The Crown Proceedings Act Model and Injunctions 408 b) The Dispute in the New Zealand Law Commission 409 c) Injunctions, the Equality Principle, and the Public-Private Distinction 477 d) Enjoining Officers as Representatives of the Crown or Their Employees 477 e) The English and Scottish Contempt Cases 473 i) In re M. Liability Possible as a Minister Rather than an Individual Acting as a Minister 473 ii) The Scottish Prison Cases the Possibility of "Public Injunctions" 474 f) Conclusion Is This All Consistent with the Equality Principle? 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 476 2) Fence at the Top of the Cliff or Ambulance at the Bottom? 479 3) 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
11 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
12 xvii 5) Judicial Conduct Commissioner and Judicial Conduct Panel Act, ) 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 557 a) Strict Accounting of All Profits 553 b) Account of Profits that are Caused by Breach 556
13 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 ) 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 605 D. Conclusion 606 CHAPTER l8 Exporting Your Remedy: A Canadian Perspective on the Recognition and Enforcement 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-monetary Relief 614 D. Lower Court Musings: Recognition of Interim Non-monetary Rulings 627
14 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 643 3) Regie Nationale des Usines Renault S.A. v. Zhang 645 4) 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
15 xx Detailed Table of Contents 1) The "Democratization" of Speech Technology 684 2) Defamation Litigation against Non-media Defendants 686 3) 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 Plaintiff Lawyer 698 2) "Pursuing Wrongdoers" 701 3) "Where the Claims at Issue Are So Small as to be Individually Untenable" 702 a) The Stratospheric Class 702 b) The Disappearing Consumer 703 c) In-Kind Settlements and the Cy-Pres Remedies 708 4) "The Role of the Plaintiffs Counsel in Exercising Public Rights Is Ignored" 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 720 2) 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
16 xxi 1) Who is the Testator/Settlor? 735 2) What Is the Object or Purpose of the Trust? 735 3) How Has the Object or Purpose Failed? 739 4) How Is the Proposed Cy-Pres Scheme Near to the Original Testator's Intent? 747 5) 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
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