The Action For Pure Loss Of Opportunity

The Australian law, as with the English does not recognise a claim for loss of a future prospect that is not consequent upon established injury or damage¹. The issue that has evolved is, ‘What constitutes injury or damage?’.

In the case of Sellars v Adelaide Petroleum, the Plaintiffs sued under the Trade Practices Act for damages. They had come to a draft agreement with ‘Pagini’, but were then induced by representations by another party ‘Poseidon’, to enter into an agreement with that entity.

Poseidon then repudiated the agreement. The Plaintiffs accepted the repudiation and entered into fresh negotiations with Pagini, but concluded on less favourable terms than originally they would have achieved. They sued Poseidon for the loss of opportunity of completing the original agreement with Pagini. The Plaintiffs were successful under the Trade Practices Act, and in so finding, the majority of the High Court