(c) That's wrong. Damages in tort law are compensatory. They are awarded to compensate a plaintiff for harm suffered as a result of the defendant's wrongful conduct.
The amount of damages is calculated so as to put the plaintiff in the position they would have been in had no wrongful conduct taken place. This means that Miles can claim damages sufficient to put him in the position he would have been in, financially, if the fire had not broken out.
Damages for breach of contract can include both immediate loss (the harm to the factory) and consequential loss (the loss of profits while the factory closed for repair) provided the consequential losses are not too remote. In the present case it is very likely that Miles could successfully claim both the cost of repairs to the factory and the lost profits.