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8/19/2019 Basics of Duty of Care - Tort Law UK http://slidepdf.com/reader/full/basics-of-duty-of-care-tort-law-uk 1/30 HISTORICAL BACKGROUND OF DUTY OF CARE : Neighbor Principle emerged in [DONOGHUE v. STEVENSON] 2 s!ge es in ["NNES v. #E$TON] %riicisms o& he 2 s!ge es le!d o he ' s!ge es o& [%"P"$O v. D(%)#"N] *ord )eih in [#U$PH+ v. ,$ENT-OOD] !rged &or !n incremen!l !ppro!ch o be !doped !nd /!s highl0 !g!ins he 2 s!ge es. (ncremen!l "ppro!ch 1 $e!son b0 !n!log03. Previosl0 es!blished c!ses /ill be loo4ed ! /hich !re simil!r o he novel si!ion !nd hen !pplied b0 he re!son o& !n!log0 [%"P"$O v. D(%)#"N] !ppro!ch is he crren !ppro!ch . The 2 s!ge es is no longer relev!n b esseni!l &or nders!nding o& he ' s!ge es -henever ! DO% is o es!blished 5 no/ /e h!ve /o opions - 6irs loo4 ! he previosl0 l!id preceden 1 Drivers 5 Docors 5 Emplo0ers 7 #!n&!crers !ll o/e ! d0 o& c!re . Hence his principle  (s pre8es!blished . - (& no l!/ is l!id do/n previosl0 THEN ON*+ !ppl0 *ord ,ridge9s ' s!ge es o& %!p!ro : $e!son b0 "n!log0 THE THREE STAGE TEST CAPARO TEST : ;< *oss o he cl!im!n ms be re!son!bl0 &oresee!ble 2< There ms be ! pro=im!e rel!ionship be/een he De&end!n 7 he %l!im!n '< ( ms be &!ir5 >s 7 re!son!ble &or he cors o impose ! D0 O& %!re on he de&end!n. ELEMENT # 1 : REASONABLE FORSEEABILITY [LAW SOCIETY v. KPMG] ? This es is o& !n ob>ecive n!re. The de&end!n is comp!red /ih ! re!son!ble m!n.  The re!son!ble &oresee!bili0 h!s o s!is&0 /o condiions - %l!im!n !s !n individ!l @member o& ! cl!ss< /old h!ve sAered ! loss ms be &oresee!ble -  The speciBc 4ind o& in>r0 h! h!s occrred ms be re!son!bl0 &oresee!ble. %l!im!n !s !n individ!l @member o& cl!ss< /old h!ve sAered ! loss ms be &oresee!ble1 [BOURHILL v. YOUNG] " pregn!n l!d0 he!rd ! cr!sh !nd g!ve birh o ! sill born child de o he &e!r incied. She brogh ! cl!im nder negligence !g!ins he de&end!n. This /!s ! novel si!ion. The cors held h! he cl!im!n /!s so &!r !/!0 &rom he ime o& !cciden 5 h! she cold no h!ve been &oreseen re!son!ble b0 he D. She /!s no in he vicini0 o& he !cciden. [HAILEY v. LONDON ELECTRICITY BOARD]
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Basics of Duty of Care - Tort Law UK

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Page 1: Basics of Duty of Care - Tort Law UK

8/19/2019 Basics of Duty of Care - Tort Law UK

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HISTORICAL BACKGROUND OF DUTY OF CARE :

● Neighbor Principle emerged in [DONOGHUE v. STEVENSON]

2 s!ge es in ["NNES v. #E$TON]

● %riicisms o& he 2 s!ge es le!d o he ' s!ge es o& [%"P"$O v. D(%)#"N]●

*ord )eih in [#U$PH+ v. ,$ENT-OOD] !rged &or !n incremen!l !ppro!ch o be!doped !nd /!s highl0 !g!ins he 2 s!ge es.● (ncremen!l "ppro!ch 1 $e!son b0 !n!log03. Previosl0 es!blished c!ses /ill be

loo4ed ! /hich !re simil!r o he novel si!ion !nd hen !pplied b0 he re!son o&

!n!log0● [%"P"$O v. D(%)#"N] !ppro!ch is he crren !ppro!ch . The 2 s!ge es is no

longer relev!n b esseni!l &or nders!nding o& he ' s!ge es● -henever ! DO% is o es!blished 5 no/ /e h!ve /o opions- 6irs loo4 ! he previosl0 l!id preceden

1 Drivers 5 Docors 5 Emplo0ers 7 #!n&!crers !ll o/e ! d0 o& c!re .

Hence his principle

  (s pre8es!blished .- (& no l!/ is l!id do/n previosl0 THEN ON*+ !ppl0 *ord ,ridge9s ' s!ge es o&

%!p!ro : $e!son b0 "n!log0

THE THREE STAGE TEST CAPARO TEST :

;< *oss o he cl!im!n ms be re!son!bl0 &oresee!ble2< There ms be ! pro=im!e rel!ionship be/een he De&end!n 7 he %l!im!n'< ( ms be &!ir5 >s 7 re!son!ble &or he cors o impose ! D0 O& %!re on he

de&end!n.

ELEMENT # 1 : REASONABLE FORSEEABILITY

[LAW SOCIETY v. KPMG] ? This es is o& !n ob>ecive n!re. The de&end!n is

comp!red /ih ! re!son!ble m!n.

●  The re!son!ble &oresee!bili0 h!s o s!is&0 /o condiions- %l!im!n !s !n individ!l @member o& ! cl!ss< /old h!ve sAered ! loss ms be

&oresee!ble-  The speciBc 4ind o& in>r0 h! h!s occrred ms be re!son!bl0 &oresee!ble.● %l!im!n !s !n individ!l @member o& cl!ss< /old h!ve sAered ! loss ms be

&oresee!ble1 [BOURHILL v. YOUNG] " pregn!n l!d0 he!rd ! cr!sh !nd g!ve

birh o ! sill born child de o he &e!r incied. She brogh ! cl!im nder

negligence !g!ins he de&end!n. This /!s ! novel si!ion. The cors held h!

he cl!im!n /!s so &!r !/!0 &rom he ime o& !cciden 5 h! she cold no h!ve

been &oreseen re!son!ble b0 he D. She /!s no in he vicini0 o& he !cciden.

● [HAILEY v. LONDON ELECTRICITY BOARD]

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-  The consrcors h!d le& ! h!mmer in he sree de o consrcion re!sons !nd

did !4e s!&e0 me!sres o le ohers !void i. , hose s!&e0 me!sres /ere onl0

se&l &or people /ih ! norm!l e0esigh. The %l!im!n /!s ! blind m!n /ho go

in>red de o he h!mmer. The cors held h! even hogh blind people

consie ! sm!ll percen!ge in *ondon he0 did no re&se o !4e ino !ccon he

cl!ss o& members o& blind people. This in>r0 /!s &oresee!ble.●  The speciBc 4ind o& in>r0 /!s re!son!bl0 &oresee!ble 1

- [ROE v. MINISTER OF HEALTH]

ELEMENT # 2: PROXIMITY BETWEEN THE CLAIMANT & DEFENDANT

●  The me!ning o& pro=imi0 is no cle!rl0 deBned b0 l!/. ( is ! lile v!ge.

● [YEUN KUN v. A-G OF HONG KONG] @*ord )eih< !emped o e=pl!in he

concep o& pro=imi0 in /o /!0s.-  The Brs inerpre!ion is 6O$SEE",(*(T+ ? -hoever 0o c!n &oresee o be h!rmed

b0 0or !cions gives rises o ! pro=imi0 . @ %!n be conr!sed /ih he neighbor

principle o& Donoghe 5 "nne9s /o s!ge es<-  The more recen inerpre!ion !ccording o *ord )eih is o nders!nd he /hole

concep o& rel!ionship . ( is ermed !s ! COMPOSITE TEST /hich loo4s ! !ll he

circms!nces o& he rel!ionship. No onl0 conBned ill &oresee!bili0.

● [CC OF WEST YORKSHIRE] The cors ms loo4 &or some &rher ingredien in

!ddiion o &oresee!bili0 o& h!rm !nd he0 ms c!re&ll0 !n!l0Ce he hidden

ingredien /hich m!4es he /o p!ries pro=im!e o e!ch oher. Sill no cle!rl0

deBned !s !ccording o he cors he0 v!r0 &rom c!se o c!se.

● [GOODWILL v. BRITISH PREGNANCY] e=pl!ins pro=imi0 ! bi. The D /!s !

docor /ho per&ormed ! v!secom0 on . enered ino ! rel!ionship /ih he %. %bec!me pregn!n !nd brogh !n !cion !g!ins he docor &or negligenl0 done

v!secom0. The cors held h! here is NO pro=imi0 rel!ionship be/een he

docor !nd he cl!im!n. There /!s no leg!l rel!ionship o& % /ih 5 !nd hence no

pro=imi0 !rises. "noher re!son given /!s h! he birh o& ! norm!l he!lh0 child

is gener!ll0 considered ! blessing. No loss !s sch.

● [SUTRADHAR] There /!s ! ,!ngl!deshi /!er sppl0 /here ! rese!rch /!s

going on. -hile doing heir rese!rch he0 &!iled o ideni&0 he presence o& !rsenic in

he /!er. The cl!im!n /!s one o& he consmers o& he con!min!ed /!er !nd

he bec!me ill. He brogh ! cl!im nder negligence !g!ins he rese!rch socie0.

(n his c!se5 he cors held NO pro=imi0 be/een he D !nd %. The prpose o& he

rese!rch /!s no o chec4 he con!min!ion level o& /!er. Their rese!rch prpose

/!s enirel0 diAeren. There&ore no pro=imi0 /!s &ond.

● [STOWIN v. WISE] Pro=imi0 someimes is ! convenien l!bel /hich is sed o

hide he polic0 consider!ions behind he decision.  +o c!nno consider pro=imi0

!s indisingish!ble &rom he principles o& &!irness5 >sness !nd re!son!bleness .

● The me!"!# $% &he &e'm ('$)"m"&* +h!#e, "&h &he "!/ $% /m#e

"! 01e,&"$!. (& 0o h!ve sAered ! ph0sic!lproper0 d!m!ge 5 i is !lmos Fie

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e!s0 o es!blish pro=imi0. The d!m!ge isel& is he evidence o& pro=imi0 in sch

c!ses. , /hen i comes o economic loss 5 he cors loo4 ino he enire

rel!ionship o es!blish pro=imi0. There&ore no gener!ll0 e!s0 o es!blish D0 o&

c!re in economic loss c!ses.

ELEMENT # 3: FAIR JUST & REASONABLE FOR THE COURTS TO IMPOSE ADUTY OF CARE

●  The polic0 consider!ions !re !4en ino !ccon prim!ril0 b0 he cors●  T/o m!>or polic0 consider!ions- 6loodg!es "rgmen- Over4ill "rgmen

21st  October 2015 (Wednesday) Lecture

%"P"$O ' S!ge Tes 1 @*ord ,ridge< !long /ih re!soning &or !n!log0 0o h!ve o

!ppl0 he ' s!ge es

; 6orsee!bili0

2 Pro=imi0

' ( ms be &!ir5>s !nd re!son!ble o impose ! d0 o& c!re

"** TH$EE E*E#ENTS #UST ,E P$OVEN.

 T/o m!in polic0 consider!ions1 6loodg!es !rgmen

  Over4ill !rgmen

F2$$/#&e, '#1me!& 1 ( is he need o 4eep li!bili0 in !cceped bond!ries.

,!seless cl!ims /ill be brogh o he cor 5 overbrden he de&end!n.

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Ove'"22 '#1me!& 1 (& DO% is s!red being imposed hen m!n0 se&l pblic

bodies /ill sop oAering services @beneBci!l !civiies< hence le!ding o derimen!l

pr!cices.

%!ses &or !pplic!ion o& he hird %!p!ro s!ge 1

MARC RICH 3 CO v. BISHOP ROCK MARINE [4556]  The cl!im!ns c!rgo /!s

lo!ded on 9s ship &or r!nspor . The ship /!s d!m!ged on is /!0 . ( /!s doc4ed

empor!ril0 o chec4 he d!m!ge.

 The D /ere responsible &or ensring ship9s s!&e0 @cl!ssiBc!ion socie0< . D

inspeced he ship !nd ceriBed h! !&er rep!ir he ship is cle!r o proceed on

vo0!ge. " &e/ d!0s l!er5 he ship s!n4 !nd he million ponds /orh m!eri!l

s!n4.

%l!im!ns brogh !n !cion !g!ins negligence . The0 sAered ! d!m!ge de o

/rong cle!r!nce o& he ship o proceed on vo0!ge.

 The cors held h! here is NO DUT+ O6 %"$E . "ccording o he cors he D is !

cl!ssiBc!ion socie0 !nd is !n independen non proB m!4ing bodies3 /hich !c in

he pblic beneB3 &or he /el&!re o& people !nd heir properies ! he se!s. The0

/ill s!r beh!ving de&ensivel0 i& he DO% is imposed on hem !nd re&se o c!rr0

o rgen or problem!ic inspecions in he &re.

(& DO% is imposed on hem hen he limied resorces he0 h!ve &or inspecion 5

he0 /ill be !4en !/!0 &rom hem !nd /ill be divered &rom he &nd!men!l /or4

o condc liig!ion.

WHITE v. 7ONES he es!or h!d m!de ! /ill. He /en o he D /ho /!s !

solicior !nd !s4ed him o ch!nge he /ill !nd he proper0 h! he /ill le!ve behind

/ill go o he d!ghers @beneBci!ries<. The D9s solicior did no ch!nge he /ill !nd

he es!or died. The old /ill /!s in eAec. No/ he d!ghers !re ! ! loss

bec!se !s ! resl o& solicior9s negligence he0 did no ge heir inheri!nce sh!re.

 The inended beneBci!ries brogh !n !cion in negligence !g!ins he D9s solicior .

Hose o& *ords b0 ! m!>ori0 o& hree o /o held5 h! solicior o/ed ! d0 o& c!re

o he d!ghers.

$e!soning o& HO* 1 6ollo/ing polic0 consider!ions /ere !4en ino !ccon.

● (& /e did no impose ! DO% in his c!se hen he person /ho h!s ! cl!im @es!or<

/old h!ve sAered no loss !nd he person /ho h!s sAered ! loss @d!ghers<

he0 /old h!ve h!d no cl!im.

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● (mpor!nce o& /ill in he socie0 1 (& /e did no impose ! DO% here hen he

impor!nce o& /ill /old h!ve been ndermined !nd he es!or9s origin!l /ishes

/old h!ve been &rsr!ed.

●  The impor!nce o& he role o& soliciors in he socie01 The solicior in his c!se h!d !

ver0 impor!n role o& en!bling he es!or o conrol his proper0 even !&er hisde!h . (& /e did no impose ! DO% on he solicior hen he people /old no h!ve

been !ble o rel0 on he pro&ession!l role o& he soliciors in he &re.

MCLOUGHLIN v. O BRIAN  This c!se is impor!n bec!se o& he hird s!ge o&

%!p!ro

*ord Sc!rm!n /!s !g!ins he hird s!ge !nd hence criiciCed i. The polic0 isses

o& /hen o limi li!bili0 did no &!ll o he >dici!r0 !nd he0 /ere m!ers /hich

reFired !4ing ino !ccon soci!l 5 economic !nd poliic!l consider!ions /hich

c!nno be deermined b0 he cors.

*ord Edmnd D!vis in he s!me c!se dis!greed /ih *ord Sc!rm!n. He implied h!

 >dges do !4e m!ers o& polic0 ino heir o/n h!nds !nd !ppl0 hem in

deermining /heher or no o e=end li!bili0 !nd his is he /idel0 !cceped

!ppro!ch.

COMPARISON OF THE 8 STAGE TEST [ANNES v. MERTON] "&h &he 9 STAGE

TEST [CAPARO v. DICKMAN]

DiAerences be/een 2 S!ge es 7 ' s!ge es

●  The /o s!ge es s!red /ih he presmpion o& li!bili0 in ever0 c!se /here

&oresee!bili0 /!s &ond nless pblic polic0 cold neg!ive h! li!bili0 . The hree

s!ge s!rs /ih he presmpion o& no d0 o& c!re !nd reFires polic0

consider!ions o be imposed in order o es!blish he d0 o& c!re.●  The second diAerence be/een he 2 s!ge !nd ' s!ge es is h! he 2 s!ge

invies he cor o disreg!rd previosl0 es!blished principles. The %!p!ro es on

he oher h!nd !dds !n impor!n F!liBc!ioncondiion h! he l!/ shold

develop incremen!ll0 @re!son b0 !n!log0< /ih he e=ising leg!l d0 si!ions.

Hence i gives respec o he preceden. The 2 s!ge did no give consider!ion o

he preceden.●  The me!ning o& he erm pro=imi03 is diAeren.

%riicisms o& he hree s!ge es 1

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●  The hree limbs o& he es !re no /!er igh comp!rmens b e=ible

componens. The rel!ionship be/een hem is imprecise r!her h!n scieniBc . "ll

o& hem overl!p /ih e!ch oher !nd !re c!lled &!ces o& he s!me hing3. @On he

&!ce o& i5 i seems h! here is no overl!p be/een hem b in re!li0 /hen hese

s!ges !re !pplied he0 !re e=ible !nd overl!pping. The more &oresee!ble he

h!rm is he more li4el0 0o /ill see he pro=imi0 . [Pro=imi0 is !ssmed e!sil0 o&in>r0 or ph0sic!l h!rm]

● %oncep o& pro=imi0 !nd &!irness !re no sscepible o& !n0 sch precise deBniion.

 The0 !re >s convenien l!bels sed b0 he cors o ideni&0 d0 o& c!re.●  The 'rd s!ge o& he ' s!ge es is ver0 simil!r o he 2nd s!ge o& he 2 s!ge es.

*o o& ncer!in0 !nd inconsisenc0 in l!/ /hen oo mch discreion given o he

 >dges.●  The ' s!ge es is li4el0 o be c!lled in !id less &reFenl0 h! migh !ppe!r. @ver0

limied !pplic!ion !nd sed b0 cors in novel si!ions or /here negligence is !

coneniondispe. #osl0 i is irrelev!n<● "ccording o *ord $os4ill5 his is ! ver0 !riBci!l es .

%$(T(%"**+ "N"*+IE THE TH$EE ST"GE TEST *"(D DO-N ,+ *O$D ,$(DGE (N

[%"P"$O (NDUST$(ES v. D(%)#"N]. %O#P"$E 7 %ONT$"ST THE TH$EE

ST"GE TEST -(TH THE TESTS *"(D DO-N (N [DONUGHUE v. STEVENSON] !nd

["NNES v. #E$TON *,%]

● Ver0 brie& discssion o& he b!c4grond o& ho/ he hree s!ge /!s es!blished● Discss in de!il he hree s!ge es● %riic!ll0 !n!l0Ce he hree s!ge es @"lso comp!re i o he previos es J posiive

: neg!ive poins<● ST$EET ON TO$TS @Negligence ill %!p!ro< : *UNNE+ 7 O*(PH"NT &or commen!r0

@Neg ill %!p!ro<● Sd0 he >dgmens o& Donoghe 5 "nnes !nd %!p!ro pls commen!ries

888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888

888888888888888888888

DUTY OF CARE : OMMISSIONS AND ACTS OF

9RD PARTIES

(n he mid 2Kh cenr0 he conen o& c!ses /ere resriced ill ph0sic!l in>r0 !nd

d!m!ge o proper0.

(n he l!s LK 0e!rs he l!/ o& negligence9s !mbi h!s e=p!nded !nd novel

si!ions !re &!ced b0 he cor @economic lossJ ps0chi!ric in>r0< . The cors

h!ve &el he need o resric he scope o& li!bili0 o& negligence /ihin !ccep!ble

bond!ries in order o sop e=p!nsion.

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 The gener!l rle /!s eiher loo4 &or preceden or !ppl0 he ' s!ge es @re!son b0

!n!log0<

 There !re &or problem !re!s /ihin negligence &or /hich diAeren rles !re !pplied

;8 O#(SS(ONS

28 E%ONO#(% *OSS'8 PS+%H("T$(% (NMU$+8 %H"$"%TE$ O6 THE P"$T(ES 888 T0pe o& cl!im!n J T0pe o& De&end!n

OMISSIONS

Disti!ti" $t%$$ Mis$'s'!$ '( " $'s'!$

M",%e,!+e :  (9s ! posiive !c . Hiing someone /ih ! c!r 5 giving someone

negligen !dvice .

N$! Fe,!+e :  " &!ilre o !comission . (& ! docor is /!l4ing on ! ro!d !nd

sees someone in>red on he ro!d !nd no doing somehing !bo i even /hen he

c!n . (& someone /ho is ! s/immer sees someone dro/ning in&ron o& him !nd

does no help him. -hen someone &!ils o m!4e somehing beer.

GENE$"* $U*E 6O$ O#(SS(ONS 1 The b!sic rle is h! l!/ does no impose

li!bili0 &or omissions.

Gener!l rle in English l!/ &or negligence is h! do no c!se h!rm or in>r0 o

!n0bod0. Ho/ever here is no gener!l rle h! s!es o help or proec someone

necess!ril0. English l!/ does no impose ! gener!l li!bili0 or d0 o !4e posiive

!cion o help !noher person in dicl0 even i& 0o !re ph0sic!ll0 /ell c!p!ble o&

doing so.

 The leg!l re!son &or his given b0 he cors &or no imposing ! d0 &or omissions is

h! in hese si!ions here is no pro=imi0 elemen. THE P$O(#"TE

$E*"T(ONSH(P (S O6 ESSEN%E TO (#POSE " DUT+ O6 %"$E.

T)*+s(', O!t"$+ 2-1. / L$!t*+$

[STOIN v. WISE] ? *ord HoAm!n sggesed h! here !re poliic!l5 mor!l !nd

economic >siBc!ions &or his gener!l rle.

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Poliic!l re!son1 (n poliic!l erms i is less o& !n inv!sion o& &reedom o reFire !

person o 4eep ohers in consider!ion /hile direcing his !cions h!n impose pon

him ! d0 o resce !nd proec.

#or!l re!son1 #or!ll05 ! person shold no be nder ! d0 o !ssis ohers bec!se

his d0 /old be o& !n overbrdening n!re !nd i /old be n&!ir o single oone o& conless people /ho did nohing o help he cl!im!n.

Economic re!son1 Unli4e mis&e!s!nce here is no >siBc!ion in non8&e!s!nce o

reFire ! person /ho is no doing somehing o spend mone0 on beh!l& o& someone

else.

LORD NICHOLL0s DISSENTIN JUDMENT :  !pproved /ih he disincion

be/een mis&e!s!nce !nd non &e!s!nce. Ho/ever he g!ve !n e=!mple o& ! !'"*s

,st'($+ @gro/n person /ho /!ches ! 0ong child dro/n in ! sh!llo/ pool<

@gro/n person /ho /!ches ! pedesri!n /!l4 ino he p!h o& !n oncoming vehicle<

*ord Nicholls s!id h! c!n he c!llos b0s!nder re!dil0 &orsee !n0 serios in>r0 i& 

he didn9 help hem Q +ES %!n /e s!0 h! in boh e=!mples vicims !re

dependen on he b0s!nder Q +ES (n boh he e=!mples 5 even hogh he c!llos

b0s!nder doesn9 conrol he sorce o& d!nger b does he conrol he me!ns o

!ver h! d!nger Q (n boh he e=!mples he brden imposed on he b0s!nder o

!4e prevenive me!sre is mch lesser h!n he poeni!l in>r0 c!sed Q

"ccording o *ord Nicholls 5 despie o& !ll he !ns/ers being !rm!ive5 English l!/

sill does no recogniCe !n0 d0 o& c!re &or omissions.

CURRAN v. NORTHEREN IRELAND CORP HOUSING ASSOCIATION

[45;<] : I! C1''!= he pl!iniA bogh ! hose. The hose h!d previosl0

gone nder renov!ions /hich /ere Bn!nced b0 he De&end!n. "&er

prch!sing he hose5 pl!iniA &ond o h! he renov!ions /ere no done

properl0 !nd he h!d o rebil he hose ! ! consider!ble cos. The

pl!iniAs brogh !n !cion !g!ins he De&end!n &or &!ilre o c!rr0 o he

spervision /ih re!son!ble c!re !s ! resl o& /hich he0 sAered ! Bn!nci!l

loss.

 The cor held 1 THE$E (S NO DUT+ O6 %"$E ON THE DE6END"NT TOSUPE$V(SE bec!se o& no pro=im!e rel!ionship.

 +EUN )UN +EN v. "G o& HONG )ONG 1 The pl!iniA deposied mone0 in !n

invesmen comp!n0 . The invesmen comp!n0 /!s spposed o be

regisered b0 ! commissioner /ho h!d regl!or0 !hori0 over hese

comp!nies. ( rned o h! his comp!n0 /!s r!ding &r!dlenl0 !nd he

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pl!iniA los !ll his mone0 !s resl o& his &r!d. He brogh !cion !g!ins

he commissioner in negligence &or &!ilre o revo4e his comp!n09s

regisr!ion even hogh i /!s sspeced h! he comp!n0 /!s r!ding

&r!dlenl0.

 The cor held 1 %ommissioner does no o/e ! d0 o& c!re o he cl!im!n.Even hogh i /!s re!dil0 &orsee!ble h! pl!iniA /old sAer he d!m!ge5

ho/ever i /!s held h! &oresee!bili0 is no scien !lone !nd pro=im!e

rel!ionship is esseni!l.

*ord )eih s!id 1 i is evidenl0 Fie nhin4!ble h! here shold be

li!bili0 in negligence on he p!r o& one /ho sees !noher o /!l4 over !

cliA /ih his he!d in he !ir !nd &orbe!rs o sho ! /!rning3 .

P.PERL>E)($'&e',? v. CAMDEN LBC :  The loc!l concil @de&end!ns< o/ned !

bloc4 o& !s . The b!semen ! /!s emp0. The cl!im!ns /ere he en!ns o& !n!d>oining ! . There h!d been sever!l brgl!ries in he !re! b he D9s ! /!s le&

nsecre. On one occ!sion here /!s ! brgl!r0 in /hich he brgl!rs enered he

D9s emp0 ! !nd he0 4noc4ed ! hole o !n ;R inch /!ll h! /!s common o boh

he !s !nd enered he cl!im!n9s ! !nd sole hings.

%l!im!ns brogh !n !cion !g!ins no secring he ! de o /hich he0 sAered

loss.

%ors did no Bnd !n0 d0 o& c!re.

Oliver *M s!ed h! &oresee!bili0 o& d!m!ge o proper0 is no b0 isel& o be

re!ed !s ! &ond!ion o& he d0.

SMITH v. LITTLEWOODS ORGANI@ATION [45;<] : The Ds bogh !n

!b!ndoned cinem! /ih he inenion o& convering i ino ! sperm!r4e l!er. Soon

!&er he0 h!d !4en possession o& his proper05 his proper0 /!s occpied b0 he

v!gr!ns. These v!gr!ns on /o sep!r!e occ!sions !emped o s!r ! Bre o

4eep hemselves /!rm. On he hird occ!sion /hen he0 s!red ! Bre5 he Bre go

o o& conrol 5 i spre!d o cl!im!n9s !d>!cen proper0 !nd c!sed e=ensive

proper0 d!m!ge.

%l!im!ns brogh !n !cion !g!ins he de&end!n &or &!ilre o prevening hese

v!gr!ns &rom s!ring ! Bre !nd inicing d!m!ge pon hem.

 The cors held no d0 o& c!re on he De&end!ns.

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*ord GoA s!ed h! /hile here is ! gener!l d0 o !4e re!son!ble c!re no o

c!se d!m!ge o premises in he neighborhood5 here is no gener!l d0 o preven

ohers &rom doing so.

He s!ed h! English l!/ does no gener!ll0 recogniCes li!bili0 &or omissions ,UT

his gener!l rle is no !n !bsole rle. He s!ed h! here !re e=cepion!lcircms!nces /here li!bili0 m!0be imposed.

L$'/ G$, e)+e(&"$!, :

● Under!4ing o& responsibili0● Speci!l rel!ionship be/een cl!im!n !nd de&end!n● %re!ion o& he sorce o& d!nger b0 he D

*(",(*(T+ O6 "%TS O6 '$D P"$T(ES

Speci!l rel!ionship be/een de&end!n !nd '

rd

 p!r0● D h!s 4no/ledge me!ns o& 4no/ing h! ! 'rd p!r0 is cre!ing or h!s cre!ed !

sorce o& d!nger.

UNDERTA4IN OF RESPONSIBILTIY:

●  " person /ho nder!4es o per&orm ! cer!in !s45 even gr!iosl05 !ssmes !

d0 o !c c!re&ll0 in c!rr0ing i o.

● [BARNETT v. CHELSEA 3 KENSINGTON HOSPITAL MANAGEMENT

COMMITTEE] : There /!s ! m!n /ho /en o he hospi!l compl!ining o& !

som!ch !che. The hospi!l !dmied him b he0 &!iled o e=!mine him properl0

!nd sen him home /iho ! proper di!gnosis. The m!n died o& !rsenic poisoning !

&e/ hors l!er. The cors held h! h!d he hospi!l no !dmied he p!ien !nd

sen him o home 5 he0 /old no h!ve been nder !n0 d0 o& c!re. -hen he0

!dmied him5 he0 h!d !ssmed ! d0 o& c!re o/!rds him. " &!ilre o do held

hem li!ble.

● [BARRETT v. MINSITRY OF DEFENSE] >455?  88 The pl!iniA /!s he

member o& he !ir &orce !nd here /!s ! p!r0 ! his !ir b!se. " his p!r05 he

consmed l!rge F!niies o& !lcohol !nd bec!me drn4 !nd bec!me nconscios

even!ll0. -hen he bec!me nconscios5 ! d0 ocer !rr!nged &or him o be

!4en o his room ! he !ir b!se. "&er he h!d been !4en o he room5 no one 4ep! /!ch on him !nd o 4eep !n e0e on him i& he is s!&e . -hile nconscios he

cho4ed on his o/n vomi !nd died. The %O" held h! he D did no o/e ! d0

o& c!re o preven he cl!im!n &rom consming !lcohol ,UT /hen he h!d consmed

!lcohol !nd nconscios5 he &!c h! he0 !llo/ed him o rem!in on heir premises

!&er h! even5 me!n h! he0 nderoo4 responsibili0 o/!rds him !nd b0

&!iling o 4eep ! /!ch on him he0 &!iled h! responsibili0.

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● [ME,SON v. #(N(ST$+ O6 DE6ENSE] @2KKK< 88 The D /!s ! c!mp comm!nder !nd he

org!niCed ! p!r0 /here ever0bod0 /old drin4. ( /!s held &or his roops. Once he

p!r0 /!s over he !lso org!niCed r!nspor!ions &or he people o be !4en home.

 The pl!iniA /!s one o& hese people.. -hen he /!s going home !&er he p!r0 he

ried o climb ono he roo& o& he lorr0 !nd he los his &ooing !nd &ell on he ro!d

!nd sAered serios in>ries. The c!mp comm!nder org!niCed her!nspor!ions here&ore he impliedl0 nderoo4 he responsibili0 &or he s!&e0 o&

his soldiers. "nd b0 &!iling o do so he shold be li!ble.● [IE*EN)O v.G(#,E*,$OS]@;'L< 88 " person is no nder ! d0 o commence

resce b once he does commence he resce !nd in doing so i& his condc

prevens ohers rom !Aecing ! resce or ps he cl!im!n in ! /orse condiion

h!n be&ore hen he D /ill be li!ble i& he doesn9 complee he !s4 in ! re!son!ble

m!nner.● [)ENT v. G$(66(THS] ? The cl!im!n sAered &rom !n !shm! !!c4. The docor /ho

/!s !ending o him c!lled !n !mbl!nce &or him. The c!ll /!s !cceped b he

!mbl!nce !rrived !&er K mines. On his /!0 o he hospi!l5 he cl!im!n

sAered &rom ! respir!or0 !!c4 !nd sAered &rom perm!nen br!in d!m!ge.

 The %O" held h! he !mbl!nce service9s !ccep!nce o& emergenc0 c!ll cre!ed !

d0 o provide !n !mbl!nce in good ime.● [ST"NS,(E v. T$O#"N] @;R< 888 The cl!im!n h!d ! conr!c /ih ! de&end!n !nd

she hired him &or decor!ing he premises. Dring his /or45 he D le& he cl!im!n9s

hose /iho loc4ing he doors !nd /indo/s. ,rgl!rs bro4e in !nd sole &rom he

cl!im!ns hence he cl!im!ns !s ! sresl sAering &rom proper0 d!m!ge. The

cl!im!ns brogh !n !cion in negligence g!ins he de&end!n &or he &!ilre o

spervise . ,0 enering ino ! conr!c he D h!d !ssmed ! responsibili0

o/!rds he cl!im!n o spervise he bilding .

21'K ? 1KK [TO$T #")EUP %*"SS] on #ond!0

2Rh Ocober 2K;L *ecre 1

DUTY OF CARE : OMISSIONS 3 ACT OF 9RD  PARTIES >+$!&"!1e/?

*ord GoA9s 2nd e=cepion 1 S5$!i' R$'ti"s)i5 $t%$$ D$$('t '(

t)$ P'iti6 :

Pro=im!e rel!ionship /ill !rise b!sed on he speci!l rel!ionship be/een hem.● -here here is ! speci!l rel!ionship be/een he Pl!iniA !nd De&end!n 5! posiive

d0 o& c!re is imposed b0 he l!/ on he De&end!n o proec he cl!im!n9s

ineres.● -h! elemens need o be here o consie ! speci!l rel!ionship- D holds ! posiion o& responsibili0 (n hese 0pes o& rel!ionship

@p!ren5emplo0er5o/ner o& l!nd<

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-  The pl!iniA s!ll0 in hese 4inds o& rel!ionship is eiher e=pressl0 or impliedl0

rel0ing on he De&end!n● ,"$$ET v. #(N(ST$+ O6 DE6ENSE ? The de!ils o& he rel!ionship be/een he D

!nd he pl!iniA !re sch h! i pl!ces !n e=press or implied reli!nce b0 one pon

he oher.●

 The elemen o& reli!nce is o& mos impor!nce o es!blish ! d0 o& c!re

  T%" t,5$s " S5$!i' R$'ti"s)i5s:

Re2&"$!,h"( $% /e(e!/e!+e is ! rel!ionship /here cl!im!n is

nder he c!re !nd conrol o& he De&end!n !nd is inc!p!ble o& proecing himsel&

[%"$#"$THENSH($E v. *OU(S] 8 " p!ren is responsible &or proecing his child.

[SU$TEES v. )(NGSTON ?ON8TH"#ES] 8 This incldes &oser p!rens

[)($)H"# v. %% G$E"TE$ #"N%HESTE$] 8 " men!ll0 disrbed prisoner /ho /!s

in he csod0 o& he police commied sicide /hile in heir csod0. ( /!s held

h! police h!d ! speci!l rel!ionship /ih he prisoner. The police /!s held li!ble

&or heir &!ilre o proec ! men!ll0 disrbed prisoner &rom h!rming himsel& &rom

sel& iniced h!rm.

  O&he' 'e2&"$!,h"(, "&h &he v"+&"m

[KASAPIS v. LAIMOS] 8 Emplo0erEmplo0ee c!se . Emplo0er !l/!0s o/e !

d0 o& c!re o heir emplo0ees /ho !re !4en sic4 or in>red ! /or4.

[STANSBIE v. TROMAN ] 8 Speci!l rel!ionship c!n !lso e=is in conr!c!l

c!p!ci0. The conr!c!l rel!ionship be/een he D !nd P /!s scien o impose

! d0 on he D o proec he P9s ineress.

[GOLDMAN v. HARGRAE] -  Occpiers o& l!nd c!se . "n occpier o& l!nd

h!s ! speci!l rel!ionship /ih his neighbors in respec o& h!C!rds /hich !rise on his

l!nd !nd pose d!nger o his neighbors.

[BARNETT v. CHELSEA KENSINGTON] -  Docors !nd nrses h!ve ! speci!l

rel!ionship

[THE OGOPOGO] -  The'e , $& ('&* !/ /1'"!# &h", ('&* = #1e,&%e22 $ve'$'/. The h$,& &'"e/ &$ (1& h", $& + "! &he ,($& 1& %"2e/ &$

(1& &he $& "! &he ('&"+12' ,($&. The 8!/ #1e,& /"ve/ &$ 'e,+1e &he

/'$!e/ #1e,&. I& , he2/ &h& &he h$,& $e, /1&* $% +'e &$ /$ h&

he +! /$ &$ 'e,+1e h", #1e,&. B1& "! &h", +,e &he +$1'&, +$!+21/e/ &h&

&he D , !$& 1!/e' /1&* $% +'e !/ &he'e , !$ !e#2"#e!+e $! h",

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eh2% , he /"/ h& 'e,$!2e (e',$! ", e)(e+&e/ &$ /$. He /"/ 22 he

+$12/.

L"+( "60s 3+(   $7!$5ti" : C+$'ti" " t)$ s"*+!$ " ('8$+ ,

t)$ D

-here he D cre!es or !llo/s o be cre!ed ! sorce o& d!nger /hich h!s c!sed

d!m!ge o he pl!iniA5 he /ill be nder ! d0 o proec he cl!im!n9s ineress

&or elimin!ion o& he d!nger. (& he &!ils o do so he /ill be held li!ble.

[CAPITAL 3 COUNTIES PLC v. HAMPSHIRE COUNTY COUNCIL] >455<?   1

" %O" c!se. This /!s ! consolid!ed !ppe!l. @The %or o& "ppe!l /!s he!ring more

h!n one !ppe!l ogeher ! he s!me ime<. "ll o& he c!ses involved he li!bili0

o& Bre brig!de in negligence. ( /!s o be !ssessed h! o /h! e=en !nd /here

!re he Bre brig!de oci!ls o be held li!ble.

 The [H"#PSH($E %"SE] [*ONDON %"SE] 7 [-EST +O$)SH($E %"SE] @!bove< /ere

Brs he!rd ! he High %or !nd hen /en on !ppe!l o he %O" ! he s!me ime.

 These hree c!ses h!d he s!me isse.

 THE H(GH %OU$T DE%(S(ONS 1

[%HU$%H O6 MESUS %H$(ST v. -EST +O$)SH($E 6($E 7 %(V(* DE6ENSE "UTHO$(T+]

8 There /!s ! Bre in he pl!iniA9s ch!pel . The D c!lled he Bre brig!de . The0

!rrived. 6ire brig!de h!d ! o!l o& Bre h0dr!ns ! h! ime. O o& hose onl0 '

/ere /or4ing !nd even hose ' Bre h0dr!ns /or4ed in ! &!l0 !nd del!0ed

m!nner. "s ! resl he Bre spre!d Fic4l0 !nd he enire proper0 brned o !shes.

 The pl!iniAs brogh !n !cion !g!ins he Bre brig!de &or heir &!ilre o inspec

!nd m!in!in heir Bre h0dr!ns regl!rl0. The high cor held h! he Bre brig!de

is no li!ble bec!se he0 did no cre!e he sorce o& d!nger. [ There&ore no

pro=imi0 /!s &ond !nd i /!s no >s5 &!ir !nd re!son!ble o hold hem li!ble ].

[THE *ONDON %"SE] 8 (n his c!se ! Bre bro4e o on ! l!nd @< . There /!s !n

e=plosion on *!nd !s ! resl o& /hich he !ming debris &ell on he pl!iniA9s

!d>!cen l!nd. The Bre brig!de Brs /en o *!nd !nd hen le& /iho chec4ing

he pl!iniA9s !d>!cen proper0. The debris l!er rned ino ! big Bre c!sing

e=ensive d!m!ge o he proper0. Pl!iniA brogh !n !cion in negligence !g!inshe Bre brig!de &or &!ilre o& inspecion o& his proper0 .

 The High cor did no hold he D li!ble !s he0 did no cre!e ! d!ngeros

si!ion. No pro=imi0 &ond !nd no &!ir5>s !nd re!son!ble o impose he d0.

[THE H"#PSH($E %"SE] 8 The Bre bro4e o in he roo& sp!ce o& he pl!iniA9s

proper0. Pl!iniAs h!d speciBc!ll0 ins!lled ! sprin4ler s0sem o c!er o sch Bres.

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6ire brig!de !rrived . The Bre brig!de in8ch!rge hogh h! even hogh he

sprin4ler s0sem is here 5 here !re no sprin4lers. He ordered his sbordin!e o

sh oA he enire sprin4ler s0sem. "s ! resl5 he Bre spre!d r!pidl0 !nd he

/hole bilding /!s brn do/n.

,0 giving ! posiive order5 he Bre brig!de did cre!e ! d!ngeros si!ion!ccording o he High %or. De&end!n /!s held li!ble.

"ll hese hree c!ses /ere !ppe!led o he %or o& "ppe!l

 THE %OU$T O6 "PPE"* DE%(S(ONS 1

%or o& "ppe!l pheld !ll he decisions o& High %or !nd denied !n0 !ppe!l.

$les srronding 6ire ,rig!de si!ions 1

● (& Bre brig!de is c!lled !nd he0 do no pic4 he phone5 he0 !re no nder ! d0 o

!ns/er i● (& Bre brig!de pic4s he phone hen he0 do no h!ve ! d0 o !rrive in ime. (n

conr!s5 i& !mbl!nce is c!lled he0 !re nder ! d0 o come in ime● (& he Bre brig!de &!ils o p o he Bre5 he0 sill !re no li!ble●  The0 !re onl0 li!ble in he si!ions /here he0 !cciden!ll0 cre!e he d!ngeros

si!ion.

(& he cors s!r m!4ing he Bre brig!de oci!ls li!ble5 heir /ill be over84ill

!rgmens . The cors h!ve o 4eep ! bigger picre in mind !s ! m!er o& polic0

consider!ions.

[HAYNES v. HARWOOD]  8 The D h!d some horses !nd he le& hem in he

middle o& he sree n!end!n . There /!s ! 4id /ho hre/ he sone ! he

horses 5 /hich m!de hem bol !nd c!sed in>r0 o he pl!iniA.

 The D /!s held li!ble bec!se b0 le!ving he horses in he middle o& ! bs0 sree5

he h!d cre!ed ! d!ngeros si!ion.

2h Ocober 2K;L *ecre 1

*(",(*(T+ 6O$ "%TS O6 '$D P"$T(ES 1 @6or h !nd Lh *ord GoA9s e=cepions<

● ' p!r0 scen!rio● Gener!l rle &or 'rd p!r0 li!bili0 1 [-E*D ,*UNDE** v. STEPHENS] Gener!ll0 here

is no li!bili0 &or he omissions o& ! 'rd p!r0.

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● *ord Smner (n gener!l even hogh " is in &!l5 he is no responsible &or in>r0 o

% /hich , ! sr!nger o him deliber!el0 choses o do.3

h E=cepion 1 Speci!l rel!ionship be/een he De&end!n 7 ' rd p!r0.

-here here is ! speci!l rel!ionship be/een he De&end!n !nd he Third p!r0

sch h! he D c!n be considered o be in conrol o& he ' rd p!ries condc 5 his

elemen o& conrol over he 'rd p!r09s condc /ill es!blish ! rel!ionship o&

pro=imi0 be/een he De&end!n !nd he people /ho c!n @'rd &oresee!bl0 be

h!rmed b0 he 'rd p!r09s condc.

[HO#E O66(%E v. DO$SET +"%HT] 1 The D /!s he home oce /hich h!d conrol o&

!n insiion &or 0ong oAenders. These 0ong oAenders @'rd p!r0< ried o esc!pe

&rom he csod0 o& he insiion. -hen he0 esc!ped 5 he ocers /en o bed in

! bre!ch o& heir d0. These 0ong oAenders !emped o m!4e heir esc!pe b0

bo!rding ! 0!ch /hich he0 &ond on he se!. -hen he0 s!red he 0!ch 5 i

collided /ih he pl!iniA9s 0!ch /hich /!s doc4ed ne!rb0. The pl!iniA brogh !n

!cion in negligence !g!ins he D &or he &!ilre o conrol he !cions o& hese

bo0s.

(n his c!se he cors &ond ! speci!l rel!ionship be/een he D !nd he ' rd p!r0

b!sed on he elemen o& conrol

*ord Pe!rson s!id %onrol impors responsibili03

[%"$#ENTHS($E %OUNT+ %OUN%(* v. *E-(S] 1 The Ds /ere ! loc!l !hori0 /hich

/!s responsible &or m!in!ining ! nrser0 school. The 'rd

 p!r0 /!s ! 0e!r oldchild. This child /en o o& he school on ! bs0 m!in ro!d. -hen he /en o5

here /!s ! lorr0 /ho /!s coming &rom he oher side. The *orr0 driver /ho los his

li&e /hen he h!d o s/erve his lorr0 in8order o !void hiing he child !nd drove ino

he l!mp pos.

 The represen!ives o& he cl!im!n sed he loc!l !hori0 @D< &or he loss o& li&e.

 The cl!im!ns brogh !n !cion in negligence !g!ins he De&end!n &or he &!ilre

o conrol he !cions o& he child. The Ds /ere held li!ble b0 he cors. The0 &ond

! d0 o& c!re bec!se o& he speci!l rel!ionship be/een he *oc!l "hori0 !nd

he child.

[H(** v. %H(E6 %ONST",*E O6 -EST +O$)SH($E] 1 The 'rd p!r0 /!s ! seri!l 4iller

4no/n !s +or4shire $ipper /ho h!d !emped ! series o& mrder !g!ins 0ong

/omen. The pl!iniA in his c!se /!s he moher o& ! /om!n /ho /!s he Bn!l

vicim o& + $ipper. This pl!iniA brogh !n !cion !g!ins he Police @D< in

negligence. "ccording o her h! h!d he police !pprehended he crimin!l ! ime

be&oreh!nd5 her d!gher9s mrder cold9ve been !voided.

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 The cors held h! here is no d0 o& c!re. -EST +O$)SH($E c!se /!s

disingished &rom he DO$SET +"%HT c!se. The cors did no Bnd ! speci!l

rel!ionship be/een he police !nd +or4shire $ipper.

$e!sons given b0 he cor 1

;< + $ipper /!s never in he csod0 o& he police nli4e he oAenders in he Dorse

%!se. Elemen o& conrol /!s missing.2< The descripion or ideni0 o& he 4iller /!s n4no/n ! he ime.'< There /!s no speci!l disincive ris4 o he Vicim. Vicim /!s simpl0 one o& he

hos!nds o& /omen / ho cold9ve been h!rmed b0 he 4iller. (n Dorse5 he 0!ch

/!s in he ne!r vicini0 hence /!s recogniC!ble.

L

h

 e=cepion 1 -here he D h!s 4no/ledge or h!s me!ns o& 4no/ing h! he '

rd

 p!r0 h!s cre!ed or is cre!ing ! sorce o& d!nger.

[S#(TH v. *(TT*E-OODS O$G"N(I"T(ON] 1 D did no 4no/ !bo he !civi0 o& he

v!gr!ns @no 4no/ledge or me!ns o& 4no/ing < hence no li!bili0 !s es!blished.

[%*"$) 6((NG v. DUD*E+ #ET$OPO*(T"N ,O$OUGH %OUN%(*] 1 The D concil

!cFired ! proper0 he roo& o& /hich /!s sh!red b0 he cl!im!n9s !d>!cen

proper0. There /ere resp!ssers @'rd p!r0< he0 s!red ! Bre !nd spre!d o

cl!im!n9s proper0 vi! roo& /hich c!sed d!m!ge. (n his c!se he D h!d !

previos 4no/ledge o& regl!r inrsions on his proper0 !nd h!d !lso compl!ined o& 

nmeros sch occ!sions be&oreh!nd. There&ore he 4no/ledge /!s &ond.

 THE END

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DUTY OF CARE : ECONOMIC LOSS

 There !re /o 4inds o& in>ries /here he cors !re ver0 relc!n o Bnd ! d0 o&

c!re Economic *oss !nd Ps0chi!ric (n>r0 !s opposed o person!l !nd proper0

d!m!ge.

Gener!ll0 &or (1'e e+$!$m"+ 2$,, @PE*< he0 h!ve !doped ! gener!l

e=clsion!r0 rle .

Gener!l rle 1 [%"TT*E v. STO%)TON -"TE$-O$)S]

  [S(#PSON v. TO#PSON]

  [%"ND*E$ v. %$"NE]

" D is gener!ll0 no li!ble &or PE*.

[#U$PH+ v. ,$ENT-OOD] 1 *ord Oliver The inicion o&

ph0sic!l in>r0 o he person or proper0 o& !noher nivers!ll0 reFires o be

 >siBed. The c!sing o& economic loss does no.3

[%"P"$O v. D(%)#"N] *ord ,ridge 1 "n impor!n disincion

ms be m!de be/een he 4ind o& h!rm h! h!s been c!sed o he

cl!im!n. (n p!ricl!r5 he cors ms disingish be/een c!ses /hereph0sic!l in>r0 !nd d!m!ge o proper0 h!s been c!sed on he one h!nd

!nd hose c!ses /here onl0 economic loss h!s been c!sed.3

;< -H"T (S PU$E E%ONO#(% *OSS Q2< -H+ (S (T D(66(%U*T TO $E%OVE$ D"#"GES 6O$ PU$E E%ONO#(% *OSS Q

 9t)  N"$;$+ 2-1. <W$($s(',= L$!t*+$ :

DEFINITION OF PURE ECONOMIC LOSS:

(n order o nders!nd pre

economic loss5 he nders!nding o& Consequentia Econo!ic Loss is

esseni!l.

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%E* is re!ed in he s!me /!0 !s ! ph0sic!l in>r0proper0 d!m!ge.

 The gener!l rle ON*+ !pplies o PE*5 no %E*.

C"s$>*$ti' E!"";i! L"ss:  The Bn!nci!l loss /hich sems &rom

ph0sic!l d!m!ge @i.e ph0sic!l in>r0proper0 d!m!ge< ,1e'e/ * &he+2"m!& is no prel0 economic5 b conseFeni!l economic loss.

 The Gener!l $le /ill no !ppl0 o %E*. [GENE$"**+ $E%OVE$",*E]

P*+$ E!"";i! L"ss:  ( c!n !rise in one o& he /o si!ions

!< 6in!nci!l loss is independen o& !n0 ph0sic!l in>r0Proper0 d!m!ge

  O$

b< $el!ion!l *oss

 The Gener!l rle /ill !ppl0 o PE* . [GENE$"**+ NOT $E%OVE$",*E]

S"&1&"$! 4: Whe! F"!!+"2 L$,, ", "!/e(e!/e!& $% !* (h*,"+2

"!1'*('$(e'&* /m#e.

[ROSS v. CAUNTERS >45;?]  8 The D /!s ! solicior !nd he P /!s !n

inended beneBci!r0 nder ! /ill. @'rd p!r0< /!s ! es!or. /en o his

solicior !nd old him h! he /!ns o m!4e ! /ill 5 !nd in he /ill !ll he

proper0 /ill go o P. Solicior did no ell he es!or !bo he /ill. "s !

resl o& /hich he pl!iniA did no ge he inended proper0.

( /!s compleel0 independen o& proper0 d!m!geph0sic!l in>r05 hence5 !

pre economic loss.

[SPARTAN STEEL 3 ALLOYS v. MARTIN]  The Pl!iniA in his c!se

/ere m!n&!crers o& s!inless seel in ! &!cor0. This &!cor0 /!s spplied

elecrici0 b0 ! c!ble &or po/er s!ion.

 The De&end!ns in his c!se /ere /or4ing on ! ro!d ne!rb0 he &!cor0 /here hes!inless seel /!s being m!n&!cred. -hile he0 /ere /or4ing 5 he0 !cciden!ll0

c he c!ble /hile /or4ing on he ro!d.

"s ! resl o& his 5 here /!s ! ; hors po/er shdo/n. The pl!iniA sAered !

hree he!ds o& d!m!ges de o his po/er o!ge.

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 The Brs he!d o& d!m!ge 1 'RG,P. " he ime he po/er /!s shdo/n 5 he

molen me!l in he &rn!ce /!s d!m!ged /hich le!d o he loss o& 'RG,P .

[%ONSEUENT("* E%ONO#(% *OSS]

 The second he!d o& d!m!ge 1 -orh KKG,P . "ccording o P5 i& he molen me!l

h!d no been d!m!ged hen he cold h!ve m!de proB b0 selling i. "s no/ i h!sbeen d!m!ged5 he h!s sAered loss o& proBs. [%ONSEUENT("* E%ONO#(% *OSS]

 The hird he!d o& d!m!ge 1 ; G,P. "ccording o he P5 i& here /!s no po/er

shdo/n he cold h!ve been !ble o !dd more molen me!l /hich /old h!ve

prodced more s!inless seel !nd he cold h!ve m!de mone0 . [PU$E E%ONO#(%

*OSS] The loss c!sed /!s independen o& !n0 proper0 d!m!geph0sic!l in>r0.

S"&1&"$! 8 Re2&"$!2 L$,,:

-here he Bn!nci!l loss sAered b0 he cl!im!n is

! conseFence o& ph0sic!l in>r0 or d!m!ge o proper0 ,1e'e/ * 9'/  ('&*.

$el!ion!l loss is ! Pre Economic *oss.

[SPARTAN STEELS 3 ALLOYS v. MARTIN]  The cl!im!n in his

c!se h!s sAered ! Bn!nci!l loss /hich is ! resl o& ! d!m!ge o he proper0

sAered b0 he 'rd p!r0 @po/er s!ion< . Hence i is ! rel!ion!l loss.

[WELLER v. FOOT 3 MOUTH DISEASE RESEARCH

INSTITUTE]  The Ds in his c!se negligenl0 !llo/ed !n esc!pe o& ! virs. This

virs c!sed ! dise!se in he c!le. The Ps /ere he c!le !cioneers @he0 sold

c!les. %!les didn9 belong o hem<. ,ec!se o& he dise!se c!sed5 hemovemen o& he c!le /!s b!nned !s ! resl o& /hich pl!iniA9s bsiness cold

no oper!e.

 The in>r0 sAered b0 he c!le /!s c!egoriCed !s P$OPE$T+ D"#"GE.

 The %!le belonged o ! 'rd p!r0 hence c!egoriCed !s ! rel!ion!l loss /hich /!s

! pre economic loss . The d!m!ge /!s no recover!ble.

[CATTLE v. STOCKTON WATERWORKS]  The P /!s doing !

consrcion /or4 on ! l!nd /hich belonged o ! hird p!r0. The D /!s he

o/ner o& he proper0 !d>oined o he 'rd p!r09s proper0. Some /!er

esc!ped &rom D9s proper0 !nd ooded he 'rd p!r09s l!nd. "s ! resl o&

/hich he nnels /hich /ere being bil /ere ooded !nd no /or4 cold

conine here.

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● 6in!nci!l loss bec!se o& he conr!c rendered less v!l!ble bec!se he

cold no ge he proBs he e=peced Q @ 6in!nci!l loss /hich is !

conseFence o& ! proper0 d!m!ge sAered b0 ! 'rd p!r0< .

[SIMPSON v. THOMPSON]  -here ! conr!c is rendered lessv!l!ble !s ! resl o& d!m!ge o proper0 belonging o ! ' rd p!r05 he loss

is pre economic loss /hich is gener!ll0 no recover!ble <L"+( P$?'!$= 

[LONDON BOROUGH OF ISLINGTON v. UNIERSITY

COLLEGE LONDON HOSPITAL]  The D /ere ! hospi!l . ,ec!se o& 

heir negligence ! 'rd p!r0 sAered !n in>r0. The %l!im!ns /ere ! loc!l !hori0

/ho h!d o provide resideni!l c!re o he ' rd p!r0 &ree o& cos. This /!s ! Bn!nci!l

loss /hich /!s sAered b0 !n in>r0 sAered b0 ! 'rd p!r0. Hence his being !

rel!ion!l loss. 

esion 21 -H+ "$E THE %OU$TS $E*U%T"NT TO $E%OVE$

D"#"GES 6O$ PU$E E%ONO#(% *OSS Q

$e!son ;1 6*OODG"TES "$GU#ENT

$e!son 21 Economic ineress !re inrinsic!ll0 less /orh0 o& proecion h!n

ph0sic!l ineress. Socie0 !s ! /hole !!ches more v!le o ph0sic!l /ellbeing

h!n !n individ!l proper0.

$e!son '1 The gener!l rle @no d0 o& c!re &or !n economic loss< is e!s0 o

!ppl0. There&ore i cre!es more cer!in0 in l!/.

$e!son 1 The (nsr!nce !rgmen 8 ( m!0 m!4e more economic sense &or

poeni!l cl!im!ns o insre !g!ins possible economic losses h! he0 m!0 sAer

r!her h!n &or poeni!l de&end!ns o insre !g!ins possible economic losses h!

he0 m!0 c!se.

( m!4es more sense &or he cl!im!n o insre losses r!her h!n !

de&end!n .

$e!son L1 "llo/ing economic loss o be recovered /ill mddle he bond!r0

be/een or 7 conr!c.

5t"  #o$e!ber 2015 ecture (PEL continued)

2 0pes o& Pre Economic *oss

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;< PE* resling &rom Negligen #iss!emens2< PE* resling &rom m!n&!cring o& de&ecive prodcsconsrcion o& de&ecive

PEL RESULTING FROM NEGLIGENT MISSTATEMENTS :

(& " m!4es ! negligen miss!emen o , i /ill !mon o ! pre economic loss !nd

!re gener!ll0 no recover!ble

[CANDLER v. CRANE] >454? - The onl0 speci!l rel!ionship giving rise o D0

o& %!re in respec o& negligen miss!emens is ! Bdci!r0 rel!ionship. Oher

h!n h! li!bili0 &or miss!emens cold !rise onl0 &or &r!d or &or bre!ch o& !

conr!c!l nder!4ing.

[HEDLEY BYRNE v. HELLER 3 PARTNERS] >4565? <R$'( @*(8;$t +";

L*$, & Oi5)'t=

L!/m' +,e %$' &he e)+e(&"$!W The pl!iniA c!n be !llo/ed o recover his PE* i& he is !ble o s!is&0 h! he

comes nder he scope o& Hedle0 ,0rne principle .W 6!cs o& he c!se 1 The cl!im!n /!s !n !dverising !genc0. The0 /ere

considered sppl0ing !dverising services o ! poeni!l clien @E!sipo/er< .

,e&ore he0 enered ino he conr!c /ih E!sipo/er5 he0 /ere dob&l

!bo heir poeni!l clien9s Bn!nci!l posiion. The cl!im!n c!lled he

,!n4 o& E!sipo/er o ge ! credi re&erence &rom hem. E!sipo/er9s ,!n4 is

he De&end!n. The De&end!ns s!id h! E!sipo/er is Bn!nci!ll0 sond.

Ho/ever he0 sed hese /ords /iho responsibili03 [(& his s!emenrns o o be nre /e !re no responsible<. "&er he cl!im!n relied on

his s!emen5 he0 enered ino he conr!c /ih he clien. [%*(ENT (S NOT

 THE DE6END"NT5 H(S ,"N) (S]. "&er he0 enered ino he conr!c i

rned o h! E!sipo/er /!s no Bn!nci!ll0 sond !nd /en ino liFid!ion

!nd he pl!iniAs sAered &rom ! Pre Economic *oss. The cl!im!ns

brogh !n !cion !g!ins E!sipo/er9s b!n4. "ccording o hem h! de o

0or negligenl0 m!de s!emen /e sAered ! Bn!nci!l loss.W The cors held h! i& he D h!d no se he /ords /iho responsibili03

he0 /old h!ve o/ed ! d0 o& c!re o he De&end!ns. (& his e=clsion

cl!se /!s no sed hen he D /old h!ve been li!ble &or he PE* c!sed ohe pl!iniAs.

W THE $U*E (N HED*E+ ,+$NE 1 There !re /o inerpre!ions o& he Hedle0

,0rne principle !nd is sb>ec o hem.8 The N!rro/ (nerpre!ion @Origin!l H, principle<8 The -ider (nerpre!ion @E=ended H, principle<

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W T)$ N'++"% It$+5+$t'ti" : " pl!iniA c!n recover his PE* !s !

conseFence o& 'e,$!2* 'e2*"!#  on he !e#2"#e!& m",,&&eme!&  o& 

he D !s long !s here is ! ,(e+"2 'e2&"$!,h"( e&ee! &hem. T)$ Wi($+ It$+5+$t'ti" :  The pl!iniA c!n recover PE* !s !

conseFence o& !n ,,1m(&"$! $% 'e,($!,""2"&*  b0 D o/!rds he

%l!im!n !nd cl!im!n9s 'e,$!2e 'e2"!+e $! &he ,&&eme!& m!de b0

he D. $esponsibili0 m!0 be nder!4en e=pressl0 or impliedl0.W The diAerence is h! he older rle /!s conBned ill he negligen

miss!emen. The ne/ rle no/ !lso incldes he provisions o& negligen

services !longside negligen miss!emens.

THE NARROW INTERPRETATION [ORIGINAL HEDLEY BYRNE

PRINCIPLE] :

S(e+"2 Re2&"$!,h"( : @*ord $eid< e=pl!ined /h! is ! speci!l rel!ionship. He se

o hese ingrediens 5;< The !dvisee @cl!im!n< /!s rsing he !dvisor @De&end!n< o e=ercise sch !

degree o& c!re !s he circms!nces reFired.2< ( /!s re!son!ble &or him o do so'< The !dvisor 4ne/ h! he !dvisee /!s rel0ing on him

W (& hese hree ingrediens !re inclded5 hen ! speci!l rel!ionship !rises.W @*ord Devlin< !lso !emped o e=pl!in he erm o& speci!l rel!ionship3 8

%!egories o& ! speci!l rel!ionship giving rise o d0 o& c!re !re no limied o

conr!c!l or Bdci!r0 rel!ionship5 b5 !lso hose 'e2&"$!,h"(, h"+h 'e

e01"v2e!& &$ +$!&'+&.W (n Hedle0 5 he decision o& [%"ND*E$ v. %$"NE] /!s l!belled !s ! /rong decision.W X o& he ime5 H, principle onl0 !pplies o he !dvice service given /ihin he

cone= o& bsiness or commerci!l seing. [MUTUAL LIFE 3 CITI@ENS

ASSURANCE v. EATT]W (n Ev! 5 i /!s considered &or H, principle is i scien h! he !dvice is given in

he commerci!lbsiness cone= O$ does he !dvisor h!s o be !n e=per in h!

Beld o give o !dvice. [is d0 o/ed /here D provides in&orm!ion in !

commerci!l seing or does he !dvice given h!ve o &orm p!r o& he D9s corebsiness]W (n Ev!5 he m!>ori0 s!id h! H, d0 is limied o !dvisors /ho c!rr0 on he

bsiness or pro&ession o& giving !dvise o& he 4ind sor b0 he oher p!r0.W Ho/ever 5 *ord $eid 7 *ord #orris 5 dissened. The0 held h! !ll h! is reFired is !

bsiness seing. One does no need o be !n e=per. " commerci!l or bsiness

seing sces.

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W [ESSO PET$O*EU# v. #"$DON] 7 [SP$(NG v. GU"$D("N "SSU$"N%E] 8 ,oh hese

c!ses h!ve &ollo/ed he minori0 opinion m!ll0.W The crren !ppro!ch is h! !ll h! is reFired &or H, o !ppl0 is ! bsiness seingW [%H"UDH$+ v. P$",")H"$] 8 ( is nli4el0 &or ! d0 o& c!re o be o/ed /hen

providing in&orm!ion in ! soci!l cone=5 ho/ever5 he %O" held h! he !dvice

seriosl0 given be/een &riends migh give rise o li!bili0. There /ere /o &riends. One !s4ed !noher o Bnd ! c!r &or him !nd he speciBc!ll0 s!id h! he c!r h!

0o sh!ll Bnd ms no h!ve been in !n !cciden. The c!r he &ond /!s in !n

!cciden !nd he D old % h! i is no. ,0 rel0ing on his s!emen5 he % sAered

! loss.

;;h November 2K;L *ecre @-ednesd!0< #(SSED @$e&er $ecording<

;2h November 2K;L *ecre @Thrsd!0<

ETENDED HED*E+ ,+$NE P$(N%(P*E 1

Origin!l H, principle h!s no/ become /ider !nd h!s been e=ended. ( covers

Negligen #iss!emen : Negligen miss!emen o& service.

 T/o condiions &or recovering !n economic loss 1

;< "ssmpion o& responsibili02< $e!son!ble reli!nce b0 he cl!im!n

E7t$($( HB 5+i!i5$ :  The pl!iniA c!n recover his pre economic loss i& he

D h!s !ssmed ! responsibili0 !nd he h!s re!son!bl0 relied on him. ["*SO

$E6E$ TO MUN(O$ ,"N)S %"SE] @do/n nder DPE*<

 Ass*;5ti" " +$s5"siiit, : The D c!n be considered o h!ve !ssmed !

responsibili0 /here he D 4no/s h! he pl!iniA h!s inrsed he condc o& his

!A!irs o he D rel0ing on him o e=ercise his bes eAors on he pl!iniA9s beh!l&.

W [HENDE$SON v. #E$(TT S+ND(%"TES] @;L< 8 L"+( "6 e=plicil0 recogniCed h!

he Hedle0 ,0rne principle e=ends be0ond provision o& in&orm!ion or !dvice !nd

!lso !pplies o provision o& services.W [-H(TE v. MONES] @;L< 8 @Previosl0 done in %!p!ro ' s!ge es J &or no/ in

rel!ion o Pre Economic *oss<

8 he es!or /en o he solicior !nd !s4ed him o ch!nge he /ill.8 Under he ne/ /ill he /!ned he proper0 o go his d!ghers @inended

beneBci!ries< !nd he cl!im!ns o& his c!se8 The solicior &!iled o ch!nge he /ill !nd he es!or died5 hence d!ghers /ere

deprived o& he proper0 !s he old /ill /!s eAecive.8 The cl!im!ns sAered ! PE* !s he solicior provided ! negligen provision o& 

service.8 The Fesion /!s h! does he H, principle !ppl0 here Q

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8 H, principle /ill onl0 be !pplic!ble i& /o condiions !re s!isBed. ;<"ssmpion o& 

$esponsibili0 2<$e!son!ble reli!nce b0 he cl!im!n8 The HO* b0 ! m!>ori0 o& ' 8 2 held h! he solicior o/es ! d0 o& c!re o he

inended beneBci!ries . *ord ,ro/n -il4inson s!id h! he c!se &!lls nder he

principle o& !ssmpion o& responsibili0 !nd &or him H, principle /!s !pplic!ble.

8 There /!s no reli!nce b0 he beneBci!ries b b0 he es!or . Even hogh hereli!nce &!cor /!s !bsen 5 H, principle /!s sill !pplied.

8 *ord HoA /idened he H, principle even more. @%!se b0 c!se H, /!s developed<8 Problem ideniBed 1 The problem in his c!se /!s h! he beneBci!ries h!d !c!ll0

no pl!ced !n0 reli!nce on he solicior. ( /!s he es!or /ho h!d relied on he

solicior . Solicior nderoo4 he !s4 o& dr!/ing p he /ill /hich /old h!ve in&!c

beneBed he beneBci!ries b he did no dr!/ i p &or he beneBci!ries8 He dre/ i p &or he es!or ho/ever despie he !bsence o& he elemen o& 

reli!nce 5 i /!s held h! he H, e=cepion is !pplic!ble. There&ore 5 his decision

sppors he vie/ h! reli!nce ho/ever is no ! necess!r0 elemen &or ! speci!l

rel!ionship nder H,.

8 $E*("N%E (S (#PO$T"NT 6O$ THOSE %"SES -HE$E NEG*(GENT #(SST"TE#ENTSH"VE ,EEN #"DE. ( is de o pr!cic!l re!sons.

8 $E*("N%E (S NOT (#PO$T"NT 6O$ " SPE%("* $E*"T(ONSH(P TO ,E %$E"TED. THE

%O$E E*E#ENT (S "SSU#PT(ON O6 $ESPONS(,(*(T+.8 (n he provision o& in&orm!ion or !dvice c!ses 5 reli!nce is !n impor!n elemen

bec!se /iho i he cl!im!n c!nno sho/ h! he sAered ! loss bec!se o& he

negligen !dvice. Ho/ever5 his does no me!n h! ! speci!l rel!ionship is

ch!r!ceriCed b0 reli!nce r!her i is he !ssmpion o& responsibili0 &or he !s4

h! ch!r!ceriCes or cre!es his speci!l rel!ionship.

%$(T(%(S#S 1

W ( m!4es he e=cepion ver0 /ide.W (& he elemen o& reli!nce is !4en o hen oodg!es /ill be opened !nd hence

here /ill be no limi o D9s li!bili0.W ( !c!ll0 de&e!s he ver0 prpose o& he gener!l rle /hich /!s o limi he

li!bili0 o& he D

"*TE$N"T(VE V(E- O6 HED*E+ ,+$NE DE%(S(ON 1

W This c!se /!s b!sed on Polic0 %onsider!ions.

8 (& /e don9 impose ! d0 o& c!re hen he person /ho h!s ! cl!im h!s sAered noloss !nd he person /ho h!s sAered ! loss h!s no cl!im.

8 The impor!nce o& /ills !nd prpose o& /ills /old h!ve been de&e!ed @i.e o

proec !nd disribe 0or proper0 !&er 0o die<8 The es!or9s inenion /old h!ve been &rsr!ed.8 (mpor!nce o& he role o& soliciors /old !lso h!ve been ndermined. Their services

!re spposed o be relied pon b0 he cliens !nd i& no DO% /old h!ve been

imposed in his c!se hen in he &re5 cliens /on9 rel0 on hem.

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*O$D #UST(** @Dissening >dge<

W "n esseni!l elemen o& speci!l rel!ionship necess!r0 &or H, d0 o !rise is

m!li0.W "ccording o *ord #sill 5 reli!nce is impor!n.

;Rh November 2K;L @-ednesd!0< *ecre 1

DEFECTIE PRODUCT ECONOMIC LOSS :

• %onsrcion o& ! de&ecive bilding or de&ecive consmer prodc le!ding o

!pre economic loss

• DE6E%T(VE P$ODU%T E%ONO#(% *OSS 1 ( is deBned !s Y-here here is !

de&ecive prodc !nd he de&ec is sch h! i onl0 c!ses ph0sic!l d!m!ge

o isel& !nd he de&ecive prodc !lone is d!m!ged hen he loss resling is

PE*. @gener!ll0 no recover!ble<

• D(66E$EN%E ,ET-EEN D"#"GE TO P$OPE$T+ 7 DPE*1 Proper0 d!m!ge

resls /hen he de&ecive prodc c!ses ph0sic!l d!m!ge o proper0 oher

h!n isel& ho/ever i& he de&ec in he prodc is sch h! i onl0 d!m!ges

isel& i is PE* /hich is gener!ll0 no recover!ble.

• (& ! bilding is ninh!bi!ble bec!se o& de&ecive design or consrcion hen

he loss resling is PE*.

•  THE $E"SON1 ,!sic compl!in in hese c!ses is h! he o/nerZs e=pec!ions

in !cFiring he goods or he bilding h!ve been &rsr!ed bec!se he

received somehing o& lesser F!li0 h!n he /!s e=pecing !nd hs p!id

more h!n he goods or he bilding /!s !c!ll0 /orh. The proecion o& 

e=pec!ions is properl0 seen !s he prpose o& conr!c l!/ here&ore he

cors do no !llo/ ! &rher remed0 in or gener!ll0.

• [ANNS v. MERTON LBC] -  %onribed o con&sion on l!/ o& 

d!m!ge o& proper0 .. %riiciCed !p!r he T/o s!ge es.

• 6"%TS O6 "NNS 1 There /!s ! sm!ll hose. This hose /!s bil nder he

spervision o& he De&end!n concil. D /!s ! loc!l !hori0. "&er he hose

h!d been bil5 he pl!iniAs le!sed he hose /hich /!s bil nder he

spervision !nd pl!nning permission o& he D. "&er he0 bogh he hose5

he P discovered h! here /!s ! de&ec in he consrcion o& he

&ond!ions o& he hose. The /!lls beg!n o cr!c4 !nd he oors beg!n o

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slope. The0 brogh !n !cion !g!ins he D &or heir negligence in he

spervision o& he hose.

• -!s here ! d0 o& c!re Q

• -h! sor o& d!m!ge /!s sAered b0 he pl!iniA Q [P"$T(%U*"$ (SSUE]

• ( is ! PE* bec!se he bilding !lone h!s been d!m!ged. ,ilding h!s

become ninh!bi!ble.• *ord -ilber&orce cl!ssiBed he loss !s d!m!ge o proper0 !nd he held h!

he D do o/e ! d0 o& c!re o he P.

• [MURPHY v. BRENTWOOD] 1 (n his c!se he D /ere ! concil

@loc!l !hori0<. The0 h!d !pproved he bilding pl!n &or he hose !nd he

pl!iniAs bogh he hose !&er/!rds. The0 /ere he o/ners o& he hose .

"&er b0ing he hose he0 discovered h! he &ond!ions /ere no bil

properl0 bec!se o& /hich he /!lls /ere cr!c4ing !nd he oors sloped. The0

sold he hose o he bilder ! ! consider!bl0 lo/ price. The Fesion /!sh! /h! loss

• "s per L"+( 4$it) Y (n m0 opinion i ms no/ be recogniCed h! !lhogh

he d!mge in "NNS /!s ch!r!ceriCed !s ph0sic!l d!m!ge b0 *ord

-ilber&orce 5 i /!s prel0 economic loss 7 he cl!ssiBc!ion h! /!s m!de

b0 *ord -ilber&orce /!s incorrecY.

• REASON !s Per *od )eih 1 YThe bilding isel& cold no be s!id o h!ve

been sb>eced o m!eri!l ph0sic!l d!m!ge b0 re!son merel0 o& he

in!deF!c0 o& is &ond!ions5 since he bilding never e=ised oher/ise

hen /ih is &ond!ions in h! s!e.Y .

• CLARIFIED THE CONFUSION CREATED IN ANNS :  No/ i is cle!r h!

d!m!ge o ! bilding /hich is !rib!ble o is de&ecive consrcion

consies PE*.

• [D 3 F ESTATES v. CHURCH COMMISSIONERS OF

ENGLAND] -  The D /ere he m!in conr!cors /ho h!d been hired o

bild ! bloc4 o& !s !nd he0 h!d sbconr!ced he pl!ser /or4 @'rd p!r0<.

 The Pl!iniAs /ere he people /ho le!sed he bilding !nd /hen he0 le!sedi he0 discovered h! he pl!ser /or4 /hich h!d been done in he bilding

/!s done de&ecivel0. "nd here&ore he0 h!d o rene/ !ll he pl!ser /or4.

 The0 /ere cl!iming he cos o& rep!iring or rn/eing he cos o& pl!ser /or4 .

•  The m!in conr!cors brogh !n !cion !g!ins he D

• (n his c!se he HO* held5 he d!m!ges in or c!nno e=end o he cos o& 

rep!iring he de&ecive prodc isel&.

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• EJCEPTIONAL CIRCUMSTANCES TO DPEL :

;< [MUN(O$ ,"N)S v. VE(T%H(] 1 " p!r0 /ere he m!in conr!cors !nd he0 h!d

been hired b0 he pl!iniAs &or he consrcion o& ! &!cor0 . P nomin!ed in he

conr!c h! is solel0 responsible &or l!0ing he oors. ...................... -hen he

/or4 /!s compleed i /!s &ond o h! he oor /or4 /!s no done properl0 !s !

resl o& /hich he oors /ere de&ecive !nd here&ore he pl!iniAs h!d o rep!ir

he oors ! ! cos o& 2K5KKK G,P.

•  The HO* held h! here is DO% bec!se here is ! rel!ionship o& pro=imi0

be/ene he D !nd P.

•  There /ere ! nmber o& &!cors pon /hich he0 decided he rel!ionship o& 

pro=imi0.

• ;< The pl!iniAs h!d speciBc!ll0 nomin!ed he D o l!0 he oor . The0 h!d

pl!ced reli!nce on heir s4ills o do he /or4 properl0.• 2< The D 4ne/ h! he pl!iniAs /ere rel0ing pon heir s4ills in l!0ing he

oors. The0 hence h!d 4no/ledge h! he P /ere rel0ing on hem.

• '< The d!m!ge /!s ! direc 7 &oresee!ble resl o& he negligence o& he D.

 The d!mge /!s &oresee!ble !s /ell.

 This c!se !lso cl!riBes h! H, !lso !pplies o he provision o& services . @-ider

inerpre!ion o& he e=ended H, principle< "ssmpion o& responsibili0 :

$e!son!ble reli!nce.

(n he s!me c!se5 *ord ,r!ndon g!ve ! dissening >dgmen. "s per *ord ,r!ndon 5

he eAec o& he m!>ori0 >dgmen in his c!se is o cre!e be/een /o non8

conr!c!l p!ries oblig!ions /hich shold re!ll0 onl0 be conr!c!l .

 This c!se /!s re!ed /ih ! lo o& scepicism !nd /!s inerpreed ver0 resricivel0

b0 sbseFen c!ses. There&ore5 Mnior ,oo4s is o& limied eAec od!0 !nd is

conBned o sric limi!ions. There&ore he cors !ppl0 his c!se ver0 resricivel0.

Onl0 conBned o sric limi!ions.

2< %O#P*E ST$U%TU$E THEO$+ 1 (n D76 c!se5 *ord ,ridge !nd Oliver s!ed h!

he "nnZs decision cold be >siBed on he b!sis o& he comple= srcre heor0.

On his vie/5 i& /e bre!4 he de&ecive prodc ino is consien p!rs sch h!

e!ch consien p!r c!n be considered o be disinc !nd sep!r!e &rom he oher

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hen i& he de&ec in one p!r c!ses d!m!ge o he oher5 hen /e c!n s!0 h! i is

no DPE* b c!n F!li&0 !s d!m!ge o proper0.

(& his heor0 is !pplied o "nns hen he bilding is vie/ed !s m!de p o& diAeren

p!rs. -!lls diAeren &rom ceilings. (& here is de&ec in one p!r oher h!n

&ond!ions @/!lls or oor<5 his is no DPE* . This is d!m!ge o proper0.

 This e=cepion is oo /ide !nd !n0 prodc c!n be bro4en do/n ino diAeren p!rs.

%old be done &or !n0 prodc !nd he ppose o& he gener!l principle is de&e!ed.

 The %ST sill !pplies od!0 !nd i /!s sed recenl0 in he c!se o& [M"%O,S

v.#O$TON] !nd ["S-"N ENG(NEE$(NG v. *UPD(NE]

• (n "S-"N 5 here /!s ! prodc. The P bogh ! F!ni0 o& liFid prooBng.

 This liFid prooBng /!s sored in p!ils. These p!ils /ere spplied b0 he

De&end!ns. -hile he P /ere !/!iing shipmen5 he p!ils brs !nd !ll he

liFid prooBng /!s los.

(n his c!se5 *ord *l0od considered he loss o& he liFid prooBng !s d!m!ge o

proper0 s!0ing in eAec h! he p!il !nd he liFid prooBng /ere /o sep!r!e !nd

disinc iems o& proper0.

(n his c!se 5 he g!ve !n e=!mple o& ! /ine bole !nd is cor4 being de&ecive

hence rining he bole o& he /ine. The loss o he /ine /old be recover!ble

bec!se i is d!m!ge o proper0. The de&ec o& he cor4 d!m!ged he /ine hence

/o disinc elemens o& him.

• %$(T(%(S#S O6 %O#P*E ST$U%TU$E THEO$+1

Ver0 nre!lisic o !4e his vie/ reg!rding ! bilding he /hole o& /hich h!s been

ereced !nd eFipped b0 he s!me conr!cor.

Ver0 /ide . "s ever0 prodc c!n be bro4en do/n ino v!rios p!rs

De&e!s he gener!l principleZs prpose.

'< #U$PH+ v. ,$ENT-OOD

• *ord ,ridge s!ed in his c!se h! i& ! de&ec in some !c!l proper0 is

discovered !nd he de&ec is sch &h& "& &h'e&e!, &$ "!1'e $' h'm

!e"#h$', ('$(e'&* hen he Pl!iniAs c!n recover &rom he de&end!ns he

mone0 spen on obvi!ing he d!nger /heher b0 rep!ir or demoliion b

onl0 o he e=en o& proecing himsel& &rom poeni!l li!bili0 o he 'rd

p!ries.

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 The limis5 !pplic!ion !nd r!ion!le o& his e=cepion !re ncle!r.

"SS(GN#ENT1 %USTO#S 7 E%(SE %O##(SS(ONE$S v. ,"$%*"+S ,"N) P*%]

• $e!d his c!se &rom *UNNE+.• $e!d he >dgmen 7 commen!r0.

•  There !re hree ess !ppl0ing crrenl0 . %"P"$O5 (N%$E#ENT"* "PP$O"%H5

"SSU#PT(ON O6 $ESPONS(,(*(T+

• Pic4 p he poins &or hese ess.

• No &!cs !nd decision reFired. Pic4 p he commens o& he >dges.

• On Thrsd!0 i is de. [" ,$(E6 P$ESENT"T(ON DUE]

;< The incremen!l es i& o& ! lile v!le !s ! es in isel& !nd is onl0 help&l

/hen sed in combin!ion /ih ! es or principle /hich ideniBes he leg!ll0

signiBc!n &e!res o& ! si!ion. [ONE %"NNOT $E*+ ON (N%$E#ENT"*"PP$O"%H "*ONE. (T H"S TO ,E USED "S " %O#,(N"T(ON -(TH THE OTHE$

 T-O]

2< "ssmpion o& responsibili0 is o be !pplied ob>ecivel0 !nd is no

!ns/ered b0 consider!ion o& /h! he D hogh or inended. [DZs "%TU"*

(NTENT(ONS "ND 6EE*(NGS DO NOT #"TTE$. THE #O$E (T -(** ,E%O#E

O,ME%T(VE5 (T -(** ,E%O#E (DENT(%"* TO THE TH$EE ST"GE TEST]

 The &rher his es is removed &rom he !cions !nd inenions o& he !c!l

D5 he more simil!r i becomes o he ' s!ge es

'< (n c!ses /here he D h!s negligenl0 spplied in&orm!ion o he cl!im!non /hich he cl!im!n h!snZ !pplied5 !ssmpion o& responsibili0 is ! es

/hich c!n be reg!rded !s ! se&l !n!l0ic!l ool. I& ", ,1+"e!& 1& !$&

!e+e,,'* +$!/"&"$! %$' 2""2"&*. [(6 (N NEG*(GENT #(SST"TE#ENT

%"SES5 TH(S TEST 6"(*S THEN (S TH"T (T Q -(** +OU #OVE "N+ 6U$THE$ O$

ST(** "PP*+ THE TH$EE ST"GE TEST Q]

" Brs es /hich i& !ns/ered posiivel0 m!0 obvi!e he need &or &rher

inFir0 b i& !ns/ered neg!ivel0 &rher consider!ion is c!lled &or.

 These /o ess !re so simil!r o e!ch oher h! he &!cors /hich prevened

! DO% o be &ormed nder "ssmpion o& $esponsibili0 es5 /ill !lso preven

he DO% &rom !rising nder %!p!ro Tes.

< The hree s!ge es provides no s!igh&or/!rd !ns/er o he Fesion o& 

D0 o& %!re bec!se pro=imi0 !nd presmpion !re no sscepible o& !n0

precise deBniions b !re onl0 convenien l!bels here&ore "O$ shold be

sed !s me!ns &or !ns/ering he Fesions posed b0 %!p!ro Tes. ["O$ :

%"P"$O SHOU*D NOT ,E "PP*(ED (NDEPENDENT*+. "O$ SHOU*D ,E USED "S

" TOO*5 NOT " #E"N]

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L< (n c!ses /here he e=ended Hedle0 Principle h!s been sed5 i c!n be

!rged h! i is pre&er!ble o se he hree s!ge es inse!d o& sing sch !

/ide concep o& !ssmpion o& responsibili0.