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Consequential Loss

Andrew Stephenson

Until recently Australian courts have followed the decisions of English courts, which have restricted the meaning of the expression ‘consequential loss’ to loss that falls within the second limb of Hadley v Baxendale.  However, since 2008 there have been a number of cases which have refused to follow English precedent.  This paper deals with the various approaches to interpretation taken by different Supreme Courts of the Australian States.