Betterment

Betterment refers to an enhancement that increases the value of a property or facility. It is a concept of particular importance in cases involving defective building works, as it involves assessing both the extent of damages and potential mitigation measures.

Typically, if repair works are performed to a higher standard than necessary, any improvement achieved will be deducted from any damages claimed. However, if the claimant had no alternative but to carry out the work in that manner, no deduction would be made.

In the case of Harbutts Plasticine Limited v. Wayne Tank & Pump Co. Limited (1970), the court ruled that the plaintiffs were not obliged to provide credit for betterment simply because they replaced an old building with a new one of modern design. Widgery LJ explained that if the plaintiffs had incurred additional expenditure beyond the costs of replacing the old building, it might not have been recoverable. However, since this was not the case, the plaintiffs were not required to provide credit for the modern design and materials of the new factory.

In Governors of the Hospital for Sick Children and Others v. McLaughlin and Harvey Plc and Others (1987), the issue of unnecessary expenditure was considered in terms of mitigation. The defendants argued that despite the plaintiffs’ reliance on expert opinion, they had not acted reasonably in selecting their repair scheme. However, the court rejected this argument.

It’s important to note that betterment can also be a factor in lease agreements, particularly when assessing the cost of repairing dilapidations at the end of a lease or determining the reduction in property value due to dilapidations.