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Aggravated, Exemplary and Restitutionary ... - Law Commission

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PART VI<br />

SUMMARY OF RECOMMENDATIONS<br />

<strong>Aggravated</strong> Damages<br />

1.1 We recommend that:<br />

(1) legislation should provide that so-called ‘aggravated damages’ may only be<br />

awarded to compensate a person for his or her mental distress; they must<br />

not be intended to punish the defendant for his conduct. (Draft Bill, clause<br />

13)<br />

(2) wherever possible the label ‘damages for mental distress’ should be used<br />

instead of the misleading phrase ‘aggravated damages’. (Draft Bill, clause<br />

13)<br />

(3) recommendations (1) <strong>and</strong> (2) are not intended to restrict the<br />

circumstances in which damages for mental distress are recoverable other<br />

than as ‘aggravated damages’ (for example, compensation for pain <strong>and</strong><br />

suffering in personal injury cases or contractual damages for a ruined<br />

holiday).<br />

<strong>Restitutionary</strong> Damages<br />

1.2 We recommend that:<br />

(4) no attempt should be made to state comprehensively in legislation the<br />

situations in which torts should trigger restitution; subject to<br />

recommendation (7), the development of the law of restitution for torts<br />

should be left to common law development.<br />

(5) no attempt should be made to state comprehensively in legislation the<br />

situations in which equitable wrongs should trigger restitution; subject to<br />

recommendation (7), the development of the law of restitution for<br />

equitable wrongs should be left to ‘common law’ development.<br />

(6) no legislative provision should deal with whether (<strong>and</strong> if so, when)<br />

restitutionary damages may be awarded for breach of contract; the<br />

development of the law of restitution for breach of contract should be left<br />

to common law development.<br />

(7) legislation should provide that restitutionary damages may be awarded<br />

where:<br />

(a) the defendant has committed:<br />

(i) a tort or equitable wrong, or<br />

(ii) a civil wrong (including a tort or an equitable wrong) which<br />

arises under an Act, <strong>and</strong> an award of restitutionary damages<br />

would be consistent with the policy of that Act, <strong>and</strong><br />

183

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