Principle: Even if a person suffers a loss, he will be entitled to receive compensation only if a legal right is violated.
Factual Situation: An English teacher in a famous 'English School' after having some rift with the management left the school and started a new 'Language School' very close to the English School. Many students of the English School left it and joined the new Language School. As a result, the English School suffered huge financial loss and hence filed a suit for compensation against the new school.