Smith New Court v Scrimgeour Vickers [1997]

Plaintiff had been induced by fraudulent misrepresentation
to buy property.
In House of Lords, Lord Browne-Wilkinson outlined
following principles which apply in assessing damages in such cases:
1.  Defendant bound
to make reparation for all damage directly flowing from
transaction.
2.  Though such damage need not have been
foreseeable, must have been directly caused by transaction
3.  Plaintiff
entitled to recover full price paid by him, but he must give credit for any
benefits which he received as result of transaction, including, as general rule,
market value of property acquired.
4.  Account will
not generally be taken of fall in market value after date of contract unless
(i) fraudulent misrepresentation continued to operate
after that date so as to induce plaintiff to retain the property (as here), or
(ii) party misled is unable to sell property because
of the fraud.
5.  Plaintiff is
entitled to recover consequential losses caused by transaction
[eg cost of moving into new house he has been
fraudulently induced to buy]
6.  Plaintiff
must take all reasonable steps to mitigate his loss once he has discovered
fraud.