Victoria Laundry (Windsor) Ltd v Newman Industries Ltd (1949) 2 KB 428
This case involved the late delivery of a boiler to the plaintiffs who were dyers. The dyers claimed loss of profits arising in the ordinary course of business, and loss of exceptional profits on especially advantageous government contracts.
It was held that the ordinary loss of profits fell within the first head and were recoverable. The exceptional profits on government contracts fell within the second head and were not recoverable as the defendant had no knowledge that the boiler was required to fulfil unusually profitable contracts. Lord Asquith to described the required degree of probability that the loss would occur as such that "a reasonable man" "could foresee" that the loss was "likely so to result," or a "serious possibility," or "a real danger," and the probability was "on the cards".
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