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British Westinghouse v Underground Electric Railway [1912]

Facts

  • A contract to provide new turbines was breached where the turbines were faulty
  • More than reasonable steps were taken, at cost, to mitigate losses, as the turbines were replaced prior to the end of the faulty turbines’ recommended life cycles with efficient turbines which saved costs beyond the cost of the turbines themselves

Issue

  • Could the cost of the more efficient turbines be recoverable?

Decision

  • No

Reasoning

  • Mitigation was over-effective, but can’t have unjust enrichment
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