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Anglia Television Ltd. v. Reed | (1972) 1 Q.B. 60
Filmmaking, like many other large-scale projects, requires significant upfront expenditures and is dependent on the collaboration of multiple professionals for its success. If one of those professionals walks away from a project, leaving it unable to move forward, who should be financially responsible for the costs incurred to date? We explore this question about contract damages in Anglia Television Limited versus Reed.
In 1968, Anglia Television Limited decided to make a televised play about an American man and his adventures in an English wood. Prior to hiring the leading actor, Anglia made several preparations for filming. These preparations included securing a location to film and employing certain professionals for the project, such as a director, designer, and stage manager. Anglia then hired Robert Reed, a well-known American actor, to star in the play’s leading role. Reed entered an employment contract with Anglia that required his presence in England for one month to rehearse and film the play. Shortly before Reed was due to begin rehearsals, his agent advised Anglia that Reed wouldn’t be coming to England due to an accidental double-booking that required his presence in America.
After Reed repudiated his contract by expressing his intent not to perform his obligations, Anglia was unable to find a replacement actor and consequently abandoned the project.
Anglia sued Reed for damages incurred as a result of his repudiation. Because the company had no way to calculate the play’s likely profits if Reed had fulfilled his obligations, Anglia sought damages in the amount of wasted expenditures rather than lost profits. Anglia’s calculation of wasted expenditures totaled £2,750 and included expenses incurred before Reed was hired, such as the fees for the director, designer, and stage manager. Reed admitted his liability for damages, but argued that he could only be liable for expenses incurred after he entered his contract with Anglia. He calculated that those expenditures totaled approximately £855.
The trial court master agreed with Anglia and awarded damages covering all wasted expenditures. Reed appealed to the Court of Appeal, Civil Division.
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