Principle Damage without the violation of a legal right is not actionable in a court of law If ...........

Legal Concepts Law of Torts

Principle: Damage without the violation of a legal right is not actionable in a court of law. If the interference with the rights of another person is not unlawful or unauthorised, but a necessary consequence of the exercise of defendant’s own lawful rights, no action should lie.

Facts: There was an established school (‘ES’) in a particular locality. Subsequently, a new school (‘NS’) was set up in the same locality, which charged lower fees, on account of which people started patronising the new school. Because of the competition, ‘ES’ had to reduce its fees. ‘ES’ filed a case against ‘NS’ saying that ‘NS’ had caused it (TS’) financial loss and, thus, claimed compensation.

Which of the following derivations is CORRECT?

Since no legal right of ‘ES’ had been violated, therefore, as such, no compensation could be granted

Since damage is caused to ‘ES’, therefore, it should be awarded compensation

‘ES’ should be awarded compensation, as opening of school in competition is not good.

No compensation could be granted, as reduction in fees is good for the public.

Explanation:

The principle requires legal right to be violated in order for an injury to be committed. In this case no doubt the setting up of the new schools affect the business of the established school and causes it financial damage, but the principle is clear to the extent that damage without injury does not result in an actionable claim.