Baltic Shipping Co v Dillon (Mikhail Lermontov) (1993) 176 CLR 344

Facts: Mrs Dillon purchased a 14-day cruise on a ship owned and operated by Baltic Shipping. On the 10th day of the cruise, the ship sank after hitting a rock due to negligent navigation. Mrs Dillion claimed damages for, inter alia: (1) personal injuries; (2) property loss; and (3) disappointment and distress.

Held: Mrs Dillon was entitled to damages for all of the above. She was entitled to damages for disappointment and distress because the purpose of the contract was for enjoyment. Loss for enjoyment is an exception to the general rule and is compensable.

Note: No Civil Liberties Act at this time.