Harbutt's "Plasticine" Ltd v Wayne Tank and Pump Co Ltd [1970] is an English contract law case involving the quantum of damages and the concept of fundamental breach.
[2] The concept of fundamental breach has not proved to be durable, and that aspect of this case was disapproved in the House of Lords' decision in Photoproductions v Securicor.
[3] The plaintiff company engaged the defendants to design and install in their factory, an old mill, a pipe system to convey hot molten wax used in the production of Plasticine.
Also, since the company had to build a new factory (because it was not feasible to repair the old), Lord Denning said that (contrary to the usual rules of damages and ‘betterment’ in insurance claims), the defendant was liable to pay for a new replacement.
[6] Subsequently, the House of Lords in Photoproductions v Securicor criticised the Harbutt's decision and reaffirmed their earlier view expressed in the Suisse Atlantique.