Jarvis v Swan Tours Ltd [1973] QB 233

Facts

• Mr. Jarvis booked a holiday with Swan Tours Ltd, expecting relaxation and enjoyment based on the company's representations.
• The holiday provided fell significantly short of the advertised promises, causing him disappointment and mental distress.
• The contract was for a leisure service intended to provide pleasure and enjoyment, rather than purely economic value.
• Mr. Jarvis brought a claim for damages, arguing that his enjoyment and pleasure were central to the contract and that the breach warranted compensation beyond pecuniary loss.
• The case was heard at the Court of Appeal.

Issues

1. Whether damages for mental distress can be awarded for breach of contract when the contract's main object is to provide enjoyment or pleasure.
2. Whether the disappointment and distress suffered by Mr. Jarvis due to the substandard holiday experience fall within recoverable damages.
3. Whether the established limitations on expectation damages, particularly concerning non-pecuniary loss, should be relaxed in contracts for leisure and pleasure.

Decision

• The Court of Appeal held that damages for mental distress are recoverable where the purpose of the contract is to provide enjoyment, pleasure, or relaxation.
• The court recognized that Mr. Jarvis's disappointment and distress resulting from the breach were compensable.
• Damages were awarded to reflect the loss of enjoyment and mental distress suffered, increasing the sum initially given at trial.
• The decision marked a departure from the previous general rule that restricted damages for mental distress to cases of physical inconvenience.

Legal Principles

• The expectation interest principle, as established in Robinson v Harman, aims to place the claimant in the position they would have been in had the contract been performed, including benefits beyond pecuniary losses in appropriate cases.
• There are limits to recoverable damages, including remoteness (Hadley v Baxendale), mitigation, and reasonableness, particularly for reinstatement costs (Ruxley Electronics v Forsyth).
• Jarvis v Swan Tours Ltd established that where a contract's object is pleasure or enjoyment, damages for disappointment and mental distress are recoverable.
• This created an exception to the general rule against compensating mental distress in breach of contract, recognizing the distinctive nature of leisure and holiday contracts.

Conclusion

Jarvis v Swan Tours Ltd broadened the scope of contract damages by allowing compensation for mental distress where the contract's aim is to provide pleasure or enjoyment, establishing a key exception to the traditional limits on non-pecuniary damages and shaping the remedies available for leisure-related contracts.