Tort - General Negligence - Economic Loss Cases Flashcards
Murphy v Brentwood District Council
Local council failed to inspect foundations of a building adequately - became dangerously unstable - C couldn’t raise funds for repairs so had to sell at a substantial loss.
No duty of care owed in tort for pure economic loss
Weller & Co v Foot and Mouth Disease Institute
D negligently allowed F&M to escape - led to closure of cattle market - unable to recover lost revenue as not caused by physical damage but closure of market - therefore PEL
No duty of care owed in tort for pure economic loss
Spartan Steel & Alloys Ltd v Matrtin & Co (Contractors) Ltd
D negligently damaged cable cutting power to C - caused physical damage to furnaces and metal, lost profits on damaged metal and lost profit on metal not melted during the power cut.
Recovered first two as CEL but not third as PEL.
No duty of care owed in tort for pure economic loss.
Hedley Byrne v Heller & Partners Ltd
PEL - Negligent misstatements
C asked bank to check customer creditworthiness - bank approved - customer went into liquidation and C lost £17,000 on contracts. Held that DoC did arise.
Duty of care can arise in PEL where there is a special relationship between the persons giving and receiving advice. Special relationship arises when:
a) a voluntary assumption of responsibility by D and;
b) reasonable reliance by claimant.
White v Jones
PEL - extension of Hedley Byrne
Solicitor delayed in redrafting will - DoC between
There is sufficient proximity between a beneficiary (even if 3rd party) because solicitor can reasonably foresee that his negligent behaviour will impact the beneficiary.
Henderson v Merrett Syndicates Ltd
PEL - extension of Hedley Byrne
C can rely on a claim in tort even though he has a contract with D for professional services; only possible if duties owed under tort are the same as those owed under the contract.
Spring v Guardian Assurance
PEL - Extension of Hedley Byrne
A duty of care is owed by a former employer who has agreed to provide a reference but has done so negligently
Chaudhry v Pabhakar
PEL - Limitations of Hedley Byrne
Friend’s poor car advice.
No DoC owed re. advice given in a social context as long as there is no assumption of responsibility by D.
James McNaughton Papers Group Ltd v Hicks Anderson & Co
PEL - Limitations of Hedley Byrne
Takeover bid relying on draft accounts - accountant didn’t know how his statements would be used.
Where there is insufficient proximity between the two parties and D is unaware his info/statements will be relied on by C, no DoC.
