Damages

The level of damages for tort is calculated by reference to the position that the party would have been in had the tort not occurred.

This tends to produce a lower level of damages than actions in contract as in contract a party will be looking to recover lost profit, having expected to be in a better position than it would have been had the contract not been entered into.

Where there has been a fraudulent misstatement the level of damages may be higher, being damages that flow directly as a result of the tort. However it is much harder to prove fraud than negligence as fraud requires proof of dishonest intention whereas negligence is assessed by reference to an objective standard. It may therefore be advisable to pursue a claim in negligence rather than fraud or at least to claim negligence in the alternative.