James Davies reflects on the legal principles & practical appeal of betterment
A frequent cry which is raised when something new is sought to replace something old which has been damaged is “betterment”—in other words that there should be a deduction to take account of the fact that the claimant receives something new. There is an inherent practical appeal in the idea that there should be some adjustment to take account of the fact that the claimant has something newer than that which they have lost. It is an issue that arises both in claims based in contract and in tort and the same principles apply to both.
In the Court of Appeal case of Harbutt’s Plasticine v Wayne Tank & Pump Co Ltd [1970] 1 QB 447 a factory burnt down as a consequence of the negligence of the defendant’s staff. A replacement factory was built. The question arose whether or not the claim should be limited to the value of the old factory or whether the full cost of rebuilding
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