Contract; remedies for breach; damages for loss of use and enjoyment
Facts: Leeda Projects (Leeda) undertook to fit out an apartment owned by Zeng as a private art gallery. Leeda failed to complete the building project within a reasonable time, taking an additional 130 weeks beyond the promised completion date. Zeng claimed damages for breach of contract. Zeng did not suffer any loss of income, such as loss of rental, nor any additional expenditure, such as renting alternative accommodation, but she did not have the benefit of the use and enjoyment of her property during the period of the delay. Zeng claimed damages to compensate for this loss of use and enjoyment.
Issue: What was the appropriate measure of damages to put Zeng in the same position as if the breach of contract had not occurred?
Decision: Zheng’s loss of use and enjoyment during the delay could be quantified by reference to the expenses that she incurred as owner of the property during this period.
Reason: As owner of the apartment, Zeng incurred various expenses, including council rates, owner’s corporation fees, utility charges and so on. These expenses were the appropriate measure of the loss of the use and enjoyment of the apartment. It should be noted that damages for loss of use and enjoyment are not the same as damages for distress and disappointment, and are not subject to the limitations that attach to damages for distress and disappointment.