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This situation is similar to that in a famous case of Tort Law i.e Gloucester Grammar School Case. In this case, the defendant was a teacher in the plaintiff’s school. But due to some disputes, he had set up a rival school to that of the plaintiff’s with the result that the plaintiffs were required to reduce the tuition fees of their school as the students from the plaintiff’s school shifted to the defendant’s school as he was popular among students for his teaching. The plaintiff sued the defendant for the monetary loss caused. It was held that plaintiffs had no cause of action against the defendant on the ground that bonafide competitions cause no action, whatever damages it may cause. Compensation cannot be granted as there was no infringement of any legal right. So a situation where damage is caused without any legal injury is known as ‘damnum sine injuria’ which means ‘injury caused without any actual loss.’ So a person who suffers damage without any legal right being violated is not entitled to compensation.
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