Chapter 5 - Negligence Flashcards

Question

Standard of care - emergency

Answer 1

if defendant acts negligently in emergency situation, this will be taken into account - test is of a reasonable person in the defendant's situation

Answer 2

if A owes duty to B and knows B is unusually vulnerable, a higher standard of care is expected

Answer 3

P was blind in one eye and employed by the defendant on vehicle maintenance no goggles provided since risk of eye injury was small, blinded by chip of metal Held higher standard of care owed to P as an injury to remaining good eye would (and did) blind him

Answer 4

as a consequence of another's actions

Answer 5

Spartan was halfway through smelting a steel ingot when cable was damaged by Martin co, electricity was cut off Held spartan was entitled to claim damages for damaged ingot as damaged by Martin co's act for the loss of profit consequential upon ingot being in production at time. Not claim for loss of profit generally due to disruption as non actual damage to factory

Answer 6

would the damage have occurred but for defendant's act or omission

Answer 7

Hedley advertising agent for new client, company requested Information from the new client's bank (Heller) Heller returned non-committal replies, expressly disclaiming legal responsibility and were held to be negligent misstatement Heller avoided liability due to disclaimer, HL considered whether DOC to avoid causing financial loss by negligent misstatement where no contractual or fiduciary - if no disclaimer, Heller would have been liabile

Answer 8

if professional provides special skill to someone who relies on it, or if the professional knows or should knoww they would rely on it, this creates a special relationship and a DOC exists

Answer 9

Accoutnants in the knowledge that the company was seeking outside finance prepared accounts negligently showing overvalued stock and inflated profits, C saw accounts and took over company Held - claim failed on basis of causation, considered C should have known from their own enquiries that the figures were inaccurate and company take over was to secure director's expertise not just on basis of accoutns

Answer 10

True - Caparo v Dickman 1990

Answer 11

auditors duty to body of shareholders as a whole and does not extend to potential investors, nor to existing shareholders increasing their stakes

Answer 12

to enable shareholders as a whole to exercise the rights in respect of the management of the company and not to give advice on the merits of further investment in the company

Answer 13

held since accounts were draft and drawn up specifically for the chair, accountant only owed DOC to chair and no other potential bidders

Answer 14

Third party can be owed DOC if auditors knew their identity, the use to which information would be put, and that the third party intends to rely on it

Answer 15

auditors disclaimed liability on the face of reports which were relied upon by lender of hotel chain which went into administration. Court held it was perfectly reasonable for auditors to avoid liability by including a disclaimer

Answer 16

Where FS are prepared for the purpose of contesting a proposed takeover bid, the directors and financial advisers will owe DOC in respect of them to a known takeover biddger

Answer 17

CA reiterated auditor owes DOC to takeover bidder where they have been expressly informed the bidder will rely on the accounts for the purpose of determining the value of their bid and the bidder does so rely on them

Answer 18

BH signed of audit of BSG showing t&f view of position. ADT was thinking of buying, as potential buyer sought BH confirmation of the results. Partner specifically confirmed he stood by firms audit, purchased £105m only worth 40m and sued Held BH assumed responsibility for statement that accounts were t&f view, audit work negligent, BH liabile

Answer 19

KPMG retained by solicitors to prepare annual reports required by law society, who found solicitors had been defrauding clients and amounts had to be made good from compensation fund law society was trustee of, LS sued KPMG for negligence. Held KMPG owed DOC to LS and liable in negligence, just and equitable

Answer 20

K prepared accounts of travel company which collapsed Held that accountant had assumed DOC and was liable in negligence, reasonable accountant should know CAA would assume that audited accounts prepared with due skill and care and would be relied on when deciding whether to renew licence

Answer 21

Accountant involved in demerger of family owned business, designed to move a number of assets of family company to new company which would be owned by family member who wished to move interests away from rest. C claimed assets had values inflated and therefore was financial loss due to demerger, c argued accountants owed DOC held no DOC owed as only acted on behalf of company, not claimant and had advised C to seek independent advice

Answer 22

Companies Act 2006

Answer 23

Contributory negligence Violent non fit injuria (to a willing person no injury is done) exclusion clauses

Answer 24

if D can show damage/loss was partly due to claimants fault, damages will be reduced by court in proportion to degree of fault

Answer 25

where claimant voluntarily agrees to undertake legal risk of loss or damage at their own expense.

Answer 26

where there is an agreement between parties containing a provision seeking to exclude or limit liability for negligence, may be subject to UCTa if it relates to business liability for death or personal injury it will be void. Other damages subject to reasonable test

Answer 27

Put the claimant in the same position they would have been had they not suffered any loss. they will not be recovered to the extent that they are considered to be too remote

Answer 28

unless it can be said that the type of damage that actually did occur was reasonable and foreseeable

Answer 29

Ship taking oil in Sydney Harbour, due to negligence oil spilled and drifted into wharf where welding equipment was being used. Owner carried on working as advised unlikely that sparks would set fire to furnace oil, spark fell on cotton waste floating on oil, starting fire Held that claim must fail, pollution foreseeable, fire not

Answer 30

legal liability that may be imposed on a person even though they are free from blame and in addition to the personal liabilities of the other person who committed the tort

Answer 31

wrongdoer must be an employee not independent contractor employee must have been acting in the course of their employment

Answer 32

whether employer has control over what that person does, how they do it and whether employee is integral to the business

Answer 33

Warden of boarding school found guilty of sexually abusing children resident there held that the school was vicariously liable, the wardens work created a sufficient connection between abuse and work employed to do

Answer 34

Solicitor drafted bogus agreement held drafting agreements of this nature but for proper purpose within ordinary course of business, dishonest acts were sufficiently closely connected to the course of business for employers to be vicariously liable

Answer 35

Police constable in British virgin islands on duty when went to restaurant where partner was waitress. fired shots at her and mail companion, one hit British tourist who was injured. Held attorney general was not vicariously liable, as acts of policeman were not part of job, but was pursuing a personal vendetta

Answer 36

Car owner asked friend to drive car to Montecarlo where owner was going to take place in rally and they were going on holiday after rally, friends negligent driving damaged Claimants bus owner was vicariously liable for friends negligence was irrelevant friend driving to MC partly for own purpose

Answer 37

purpose for which statement made and communicated relationship between parties size of class recipient belonged to state of knowledge of the maker reliance by recipient whether professional assumed responsibility