Recovering wasted expenditure, diverted management time and litigation costs: principles, proof and exclusion clauses in contract damages (England and Wales)
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Practice notes
This Practice Note examines damages for breach of contract where the remedy sought comprises wasted expenditure, diverted management time and litigation costs arising from the breach. These are a form of pecuniary loss. For a broader overview of contractual damages, see Practice Note: Contractual damages—general principles; which sets out Baron Parke’s dicta in Robinson v Harman on the compensatory purpose of damages for breach, namely that an innocent party is entitled to be put, as to money, in the position they would have occupied had the contract been fulfilled, as if the agreement had been performed. For focused guidance on recovering losses for breach of contract, see the following Practice Notes set out below:
- Contractual damages—pecuniary losses (expectation, reliance or gain-based financial losses)
- Contractual damages—non-pecuniary losses (non-financial losses)
Be aware that contracts frequently attempt to limit or exclude categories of loss recoverable in any given case for particular breaches, a frequent source of dispute and a critical drafting issue for lawyers in practice. For additional guidance, see Practice Note: Exclusion and limitation of liability.
When might a defendant’s breach result in wasted expenditure and management time? Fall out from a breach of contract...
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Web page updated on 21/05/2026
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