Forsyth contracted with Ruxley Electronics and Construction Ltd and another company to build a swimming pool in his garden. The price agreed upon was some £70, 000. The contract provided that the maximum depth of the pool should be 7ft 6in (approximately 2.25m). After the work had been completed, Mr Forsyth discovered that the maximum depth was only 6ft 9in. When the builders sued him for the balance of the contract price, Mr Forsyth counterclaimed for breach of contract. The trial judge found that the shortfall in depth had not decreased the value of the pool. Mr Ruxley had to pay the full price, however, he was awarded £2,500 in damages for loss of amenity. This decision was overturned by the Court of Appeal, which held that it was not unreasonable to award as damages the cost of replacing the swimming pool in order to make good the breach of contract. The Court awarded some £21,000 in damages. The House of Lords restored the decision of the trial judge and awarded just £2,500 in damages.
European Review of Private Law