Gloucester Grammar School Case (1410)

Law of Torts · The Two Maxims

Facts.

A schoolmaster set up a rival grammar school directly opposite an established one and charged lower fees. The pupils of the older school left for the new one, and the old school’s fees collapsed from 40 pence to 12 pence a quarter.

Issue.

Is a person liable in tort for the financial ruin he causes a competitor by lawful competition?

Held.

No. The defendant had done nothing unlawful. He had a right to open a school and to charge what he wished. The plaintiff’s loss, however severe, involved no violation of any legal right.

Why it matters.

It is the classic authority for damnum sine injuria, and it explains the policy behind the rule: if loss alone were actionable, ordinary competition would be impossible.

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