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Law Second Year > Tort Law - Pure Economic Loss > Flashcards

Tort Law - Pure Economic Loss Flashcards

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1
Q

What does White v Jones do to Hedley?

A

Stretches it to breaking point

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2
Q

What does PEL not extend to in Australia?

A

Commercial property

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3
Q

Welton v North Cornwall DC judgment

A

Alterations on C’s guest house or close business, but alterations not necessary - DoC

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4
Q

Killick v PricewaterhouseCoopers general

A

Valuation of shares

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5
Q

What case shows judges were dissatisfied with Hedley?

A

Smith v Eric S Bush

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6
Q

Bishop on PEL arguments

A

Floodgates argument is weighty as could create deterrence to engage in X activity

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7
Q

What did the CoA attempt to do in Customs and Excise v Barclays (before HoL)?

A

Obliterate Hedley

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8
Q

How does McLachlan J in Canadian National counter comparative evidence as a way to deny PEL?

A

In the US it actually seems to have satisfied public demand for justice

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9
Q

What is the practical effect of applying Hedley in provision of services?

A

Different limitation periods in tort and contract

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10
Q

Barker on Customs and Excise

A

AR adds little to Caparo and should be removed

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11
Q

Lord Browne-Wilkinson in majority in White v Jones

A

AR for task creates special relationship, not to a person in particular

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12
Q

What judge in what case said nature of investment decision should be irrelevant for determining liability for PEL through supply of info?

A

Hercules Management v Ernst & Young, La Forest J

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13
Q

Hedley Byrne v Heller general

A

Advertising agents, bank, ‘without responsibility’

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14
Q

Smelting, power dust

A

spartan Stell v Martin

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15
Q

Why is the role of PEL in negligence restricted?

A

Because of liability in ‘economic torts’ which would be subverted if not limited

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16
Q

Riyad Bank v Ahli United Bank general

A

Kuwait bank chain, distance, not to block tortious obligations

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17
Q

What case said there is nothing to be gained from concurrent liability as tort obligations cannot exceed contractual ones?

A

Tai Hing Cotton Mill v Liv Chong

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18
Q

Simpson v Thompson

A

HoL approved Cattle v Stockton Waterworks Co

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19
Q

White v Jones general

A

Daughter and solicitor

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20
Q

Limitation period in tort

A

6 years from date of damage

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21
Q

In what case did the HoL find ‘material physical damage’ and allowed recovery of repair costs to avoid ‘present or imminent danger to health or safety’?

A

Anns v Merton LBC

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22
Q

Weir on distinction between Caparo and Smith

A

Capture paid nothing for the audit, and was a commercial enterprise

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23
Q

Scullion v BoS judgment

A

No AR as property for investment so reasonable they would conduct survey

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24
Q

What case allowed Hedley application despite no reliance and no representation?

A

Spring v Guardian

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25
Q

Killick v PricewaterhouseCoopers judgment

A

Smith applies outside of real property to valuation of shares

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26
Q

What two reasons did McLachlan J in Canadian National highlight as traditional grounds for denying PEL?

A

Comparative evidence and economic theory

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27
Q

Williams v Natural Life Health Foods judgment

A

Only company had AR as company-headed paper

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28
Q

What two cases clash on primacy of contractual or tortious duty?

A

Robinson v PE Jones; Henderson v Merrett

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29
Q

What was the issue with the language in Hedley?

A

Very wide language

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30
Q

what case is an example of AR implied from a relationship?

A

Henderson v Merrett Syndicates

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31
Q

McFarlane v Tayside Health Board judgment

A

No damages for upbringing of child

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32
Q

What is consequential loss?

A

When C is injured by D’s negligence, and then loses money as a result of the injury (e.g. earnings)

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33
Q

Hercules Management v Ernst & Young

A

Per La Forest J, nature of investment decision should be irrelevant

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34
Q

What three pockets of liability does Stapleton give?

A

Negligent misstatement, dependence on property of 3rd and defective property

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35
Q

What case shows even courts struggle to distinguish between PEL and consequential loss?

A

Aswan Engineering v Ludpine

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36
Q

London Borough of Islington v UCL Hospital judgment

A

local council care of V injured by hospital’s negligence

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37
Q

What two policy issues with Murphy does Quill highlight?

A

Buildings are homes, not just big products, and manufactured goods already have consumer protection legislation, unlike house-buyers - so shouldn’t be drawing analogy with defective products

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38
Q

Lord Templeman in Smith

A

Relationship ‘akin’ to a contract, and fact that survey was to fulfil statutory obligations did not preclude AR

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39
Q

What judge in majority in White found evidence of contact and thus AR?

A

Lord Nolan

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40
Q

Smith v Eric S Bush general

A

surveyor for council as mortgage lender and loan - purchaser relied on copy

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41
Q

Henderson on excluding possibility of tort liability

A

Per Lord Goff, he gave primacy to tortious duty over contractual

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42
Q

Byran v Moloney

A

HC of Australia, irrelevant if defect is dangerous or not, but does not extend to commercial property due to lack of vulnerability

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43
Q

What judge in what case entirely rejected pure/consequential loss distinction to determine duty of care?

A

Lord Millett in McFarlane v Tayside

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44
Q

Lord Jaunty and Lord Griffiths in Smith

A

Rejected contract analogy, finding a sufficiently proximate relationship instead based on payment by C and knowledge by D of high likelihood C would rely

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45
Q

Customs and Excise v Barclays on provision of services

A

Liability is not based on Hedley at all

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46
Q

What did Lord Haldane emphasise in Norton v Lord Ashburton to allow claim for INM?

A

Fiduciary relationship

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47
Q

Grubb and Millis on Bryan v Moloney

A

Easier to determine duty based on dangerousness, as it is dangerous nature that brings policy debates like deterrence in

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48
Q

Why did Anns still stand after D&F Estates v Church Commissioners for England?

A

Claim against builder, not local authority

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49
Q

Shell UK Ltd v Total UK

A

Equitable property owner can sue for damages and consequential losses as long as legal owner is joined

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50
Q

What is recovery of consequential loss governed by?

A

Remoteness

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51
Q

Who focused very briefly on why liability for PEL might be restricted in Hedley?

A

Lord Pearce

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52
Q

Conarken Group v Network Rail judgment

A

Damage of commercial asset assumes foresight by D that C will lose revenue

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53
Q

Contracts (Rights of Third Parties) Act 1999

A

limited right for 3rd party to enforce a contract made for his benefit

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54
Q

In what case did the HoL approve Cattle v Stockton Waterworks Co?

A

Simpson v Thompson

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55
Q

What section of what Act allows courts to relieve honest and reasonable auditor of liability?

A

Companies Act section 1157

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56
Q

The Albazero

A

X has a claim but has suffered no substantial loss - cannot claim for V who has suffered loss as a result of D but has no claim

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57
Q

Curran v NI Coronership Housing Association judgment

A

Statutory duty was to ensure public money was well-spent, not to protect recipient, so no DoC

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58
Q

Pearson Education v Charter Partnership

A

CoA doubted if anything other than actual knowledge could lead to denial of recovery, as opposed to contributory negligence reduction

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59
Q

In what case did the court reject that ‘special considerations’ apply to website representations?

A

Patchett v Swimming Pool

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60
Q

What case shows the court applying White?

A

Gorham v BT

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61
Q

Canadian National Railway v Norse Pacific Steamship judgment

A

Recognised ‘joint venture’ between bridge owner and user

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62
Q

What judge in Merrett thought Hedley and Caparo couldn’t be blended?

A

LJ Aldous

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63
Q

Letter signed by director

A

Williams v Natural Life Health Foods

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64
Q

Who said it is easier to determine duty based on dangerousness?

A

Grubb and Millis

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65
Q

What case allowed equitable property owner to sue for damages and consequential losses?

A

Shell UK Ltd v Total UK

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66
Q

What is the difficulty in provision of services cases?

A

When C is adversely affected by D’s performance of services under a contract with X

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67
Q

What case rejected that knowledge of a defect prevents a claim?

A

Targett v Torfaen BC

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68
Q

L&O on Henderson

A

Found ‘entrusting in fact’ as members had no choice in giving complete discretion to managing agents, and agents knew they had complete control

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69
Q

What were the judges anxious to show in Smith v Eric?

A

No general liability on information provided to 3rd parties

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70
Q

What case extended Hedley Byrne to liability to third parties?

A

Smith v Eric S Bush

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71
Q

Cooke on Murphy

A

Complex structure argument is absurd and transmissible warranty would be great

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72
Q

Henderson v Merrett judgment

A

Allowed concurrent liability and took up Lord Goff and Lowry in Spring

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73
Q

What judge in White v Jones gave a loose conception of reliance?

A

Lord Browne-Wilkinson

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74
Q

Henderson v Merrett Syndicates judgment

A

When D holds himself out as having specialist skills/knowledge exercised for C’s benefit, there is a DoC

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75
Q

Who said expansion in PEL could lead to a ‘limitless vista of uninsurable risk’?

A

Bishop

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76
Q

What did the court reject in Hedley Byrne?

A

That donoghue could just be simply applied

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77
Q

Mirza v Bhandal

A

Owner of a dwelling does not ‘take on work’ for purposes of s.1 defective premises act if he gives instructions for work or employs X

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78
Q

Gorham v BT judgment

A

CoA applied White, so lack of contact didn’t matter (clearer lack of contact than White)

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79
Q

What case emphasised that courts tend to define auditor’s statements narrowly?

A

Precis v William M Mercer

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80
Q

What case imposed a duty on a public authority?

A

Shaddock v Parramatta CC

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81
Q

Merrett v Babb on Caparo and Hedley

A

Can be blended as both should lead to same result

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82
Q

What is the difference between Caparo and Smith?

A

Information in Caparo was not for transaction carried out by C

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83
Q

What did La Forest J question in Hercules Management

A

Why Lord Bridge in Smith made a distinction between buying and selling

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84
Q

What does the case of Murphy assume?

A

Negligence should be subordinate to other legal categories like contract and statute, denying a remedy in the former if none in the latter

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85
Q

Department of Education v Thomas Bates

A

D&F Estates v Church Commissioners for England

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86
Q

What were the court keen to avoid in Murphy?

A

Undermining contract/statute

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87
Q

What judge in what case suggested Vietchi was an example of Hedley?

A

Lord Keith in Murphy

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88
Q

What statement in Donoghue does Mitchell particularly disagree with?

A

Lord Atkin - ‘there must be… and is’ a general conception of DoC - there need not be, Mitchell says, and there are at least two principles of a DoC

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89
Q

Anns v Merton LBC general

A

Subsidence, cracks - Local authority has statutory power to supervise building work

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90
Q

What case showed court considering that damage of commercial asset assumes foresight by D that C will lose revenue

A

Conarken Group v Network Rail

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91
Q

What case shows courts applying FJR in Caparo and finding no liability?

A

An Informer v A Chief Constable

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92
Q

Winnipeg Condominium v Bird Construction judgment

A

SC of Canada decided courts should weigh policy issues openly as complex structure theory obscures the ‘underlying policy issues’

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93
Q

Spartan Stell v Martin judgment

A

Allowed damage to metal and consequential lost profit, but not money that would have been made

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94
Q

Who argued from an economic analysis that social benefit equates to social cost, and thus there is no detriment to society by not allowing wide PEL claims?

A

Bishop

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95
Q

Gorham v BT general

A

Pension, widow and children beneficiaries

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96
Q

What are the three different approaches to PEL in commonwealth?

A

No duty by builder to subsequent purchase, duty for dangerous defects or duty for at least some non-dangerous defects

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97
Q

Why did Grubb and Millis think it is easier to determine a duty based on dangerousness?

A

Dangerous nature brings in policy debates like deterrence

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98
Q

What are the factors considered under Hedley similar to?

A

Fair, just and reasonable Caparo test

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99
Q

Economic theory as a traditional ground to deny PEL

A

Activity is inherently risky and losses basically inevitable. Could get insurance, spread loss among victims and contractual allocation of risk

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100
Q

What case showed courts recognising an owner cannot just discard a house?

A

Bryan v Moloney

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101
Q

Why is the ‘purpose’ basis for distinguishing Caparo and Smith unsatisfactory?

A

Surveyors in Smith wouldn’t have said survey was to provide info to a purchaser on whether to buy property

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102
Q

What judge in what case gave primacy to tortious duty over contractual?

A

Lord Goff in Henderson

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103
Q

What case shows the courts allowing C to claim DoC of surveyor to prospective purchaser as an individual, not through his employer?

A

Merrett v Babb

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104
Q

What was the 3 stage test from Caparo?

A

Foreseeable injury to C, proximity of relationship and C relied on statement for purpose it was provided

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105
Q

Bryan v Moloney on knowledge of defect

A

Owner cannot just discard house , and usually ‘one of the most significant investments’ of X’s life, so Donoghue should have been allowed in Murphy

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106
Q

Customs and Excise Commissioners v Barclays judgment

A

Rejected CoA methodology and result - incremental test is not freestanding. Hedley first then Caparo

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107
Q

What does Stapleton think the pockets approach should be replaced with?

A

Agenda of policy concerns

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108
Q

Henderson v Merrett Syndicates general

A

Lloyds insurance losses

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109
Q

Chaudhury v Prabhaker general

A

Car, aciddent

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110
Q

Dutton v Bognor Regis

A

If a product doesn’t work due to D’s negligence, PEL

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111
Q

Lord Goff and Lowry in Spring

A

DoC on Hedley despite no reliance and no representation, by using special information as giving AR

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112
Q

S.1 Defective Premises Act 1972

A

Requires premises to be fit for human habitation

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113
Q

What fits into second pocket of liability by Stapleton?

A

Spartan Stell

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114
Q

Junior Books v Vietchi general

A

Floor of warehouse

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115
Q

Shaddock v Parramatta CC

A

Duty imposed on public authority although do not disregard exercise of statutory functions

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116
Q

What case stated that S.1 Defective Premises Act extends to failure to carry out necessary work and carrying it out badly

A

Andrews v Schooling

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117
Q

D&F Estates v Church Commissioners for England judgment

A

Defective construction was PEL so no claim - against builder

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118
Q

What did Lord Goff and Lowry say of FJR in Spring?

A

Once AR is found, no need to consider FJR

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119
Q

Stapleton takes what kind of approach to liability in PEL?

A

‘Pockets’ approach

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120
Q

Williams v Natural Life Health Foods problem

A

Why should employee be personally liable but not the director?

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121
Q

What case argued Donoghue should have applied in Murphy?

A

Bryan v Moloney

122
Q

Riyad Bank v Ahli United Bank judgment

A

Whether or not tortious duty is excluded depends on the facts

123
Q

How did Lord Haldane in Norton argue the decision didn’t contradict Derry?

A

argued no duty found on specific facts in Derry so didn’t contradict

124
Q

What section of what act allows auditors to limit liability to companies they audit

A

Companies Act 2006, sections 534 - 538

125
Q

Canadian National Railway v Norse Pacific Steamship general

A

Railway bridge, boat

126
Q

Limited Liability Partnerships Act 2000

A

Created LLPs to let accountants and solicitors limit liability in a way not possible under Caparo

127
Q

Calvert v William Hill Credit judgment

A

DoC bc express AR

128
Q

Weir on Hedley

A

A ‘judicial jamboree… Lordships had… smoked a joint on the bus’

129
Q

What is New Zealand’s approach to PEL?

A

Impose liability on local council without regard to liability of builder

130
Q

What case challenged Candler v Crane?

A

Hedley Byrne v Heller

131
Q

Aswan Engineering v Ludpine judgment

A

Split over whether it was a case of PEL or property damage

132
Q

Why did the HoL rely on s.1 Defective Premises Act 1972 in Murphy?

A

The house was not unfit for habitation, so allowing claim would go beyond statutory protection and encroach on sovereignty of legislature

133
Q

What judge and in what case stated it was Better to say AR is ultimately a question of law REFLECTING FJR rather than disapplying it altogether, as they did in Spring?

A

Lord Hoffman in Customs and Excise v Barclays on FJR

134
Q

What case shows the approach of Australia to PEL claims?

A

Byran v Moloney

135
Q

Caparo Industries v Dickman general

A

Auditors, two batches, report

136
Q

Duty for at least some non-dangerous defects

A

Bryan; Hamlin

137
Q

What did the court say in Customs and Excise about the suitability of Caparo?

A

Better for non-statements

138
Q

Beever explores what approach to PEL?

A

Rights-based

139
Q

Partlertt on Bryan v Moloney

A

True distinction lies in inability of residential buyer to spread risk

140
Q

Dean v Allin judgment

A

AR in tort to 3rd need not even be of same nature as under contract

141
Q

What judge in Hedley said Donoghue shows how law can be developed, not the solution?

A

Lord Devlin

142
Q

What does C have to show after Hedley Byrne on PEL?

A

D assumed responsibility towards C, and C reasonably relief on the assumption of responsibility - D has to hold himself out as having some kind of duty of skill and care

143
Q

Curran v NI Coronership Housing Association general

A

Improvement grant

144
Q

What judges found relationship through proximity in Smith?

A

Lord Jauncey and Lord Griffiths

145
Q

White v Jones judgment

A

HoL found it didn’t matter there had been no contact for AR

146
Q

What is pure economic loss?

A

When C is financially worse off, but no physical damage

147
Q

What case gave primacy of contractual obligation over tortious

A

Robinson v PE Jones

148
Q

X has a claim but has suffered no substantial loss - cannot claim for V who has suffered loss as a result of D but has no claim

A

The Albazero

149
Q

Mitchell on Merrett v Babb concerning blending of Caparo and Hedley

A

‘Utterly unconvincing basis for imposing liability’ without consistency

150
Q

Companies Act 2006, sections 534 - 538

A

Auditors can limit liability to companies they audit

151
Q

What fits into third pocket of liability by Stapleton?

A

Murphy

152
Q

Honore on judgment in Hedley

A

Going ‘to the village church via the moon’

153
Q

Welton v North Cornwall DC general

A

Threatening statement

154
Q

What do Australia focus on in PEL claims?

A

Vulnerability of C with builder/architect

155
Q

Patchett v Swimming Pool judgment

A

‘Special considerations’ do not apply to website representations, although Hedley could arise on usual principles - no DoC as made clear no relianace without further enquiry

156
Q

What did the court stress in An Informer v A Chief Constable?

A

Only financial damage to C

157
Q

What case made the test for PEL clear?

A

Customs and Excise Commissioners v Barclays

158
Q

What led to development of the law in PEL?

A

Dissatisfaction with AR test, preferring a more law-based approach

159
Q

Chaudhury v Prabhakar judgment

A

Allowed AR through relationship in social context because of agency agreement

160
Q

L&O on Stapleton’s agenda of policy concerns idea

A

Valuable function of such categorisation, but does not relieve court of difficult value judgments

161
Q

What did Derry v Peek lead to an assumption of?

A

Innocent negligent misstatement was not actionable

162
Q

Calvert v William Hill Credit general

A

Close telephone account

163
Q

Who finds Hedley to be based on foreseeability?

A

Atkey

164
Q

What case put Anns into question?

A

D&F Estates v Church Commissioners for England

165
Q

What case shows Australia’s test for supply of information and liability for PEL?

A

Esanda Finance Corporation v Peat Marwick

166
Q

White v Jones on voluntary assumption, per Lord Browne-Wilkinson

A

Looser conception of reliance as you rely on solicitors IN GENERAL

167
Q

what is an example of when the existence of a contract and tortious liability can take the tort duty beyond contractual bounds?

A

AR based on an unenforceable agreement for lack of consideration

168
Q

What did Lord Reid in Hedley say of social contexts and AR?

A

No AR in social context (i.e. implied from friendship)

169
Q

When did Hedley Byrne allow a DoC?i

A

When D has voluntarily assumed responsibility for C’s economic welfare

170
Q

Andrews v Schooling

A

S.1 Defective Premises extends to failure to carry out necessary work and carrying it out badly

171
Q

What academic called complex structure argument absurd?

A

Cooke

172
Q

Close telephone account

A

Calvert v William Hill Credit

173
Q

Lord Nolan in White v Jones

A

Found evidence of daughters speaking to solicitor

174
Q

Name one of the first cases where judge refused a claim for being for PEL?

A

Cattle v Stockton Waterworks Co

175
Q

No duty by builder to subsequent purchaser

A

D&F Estates; Murphy

176
Q

What academic thought a transmissible warranty of quality would be a great thing?

A

Cooke

177
Q

Targett v Torfaen BC on knowledge of defect

A

Knowledge doesn’t prevent a claim - was it reasonable not to move to avoid damage?

178
Q

Winnipeg Condominium v Bird Construction general

A

Policy issues over complex structure

179
Q

What Act allows accountants and solicitors to limit liability in a way not possible under Caparo?

A

Limited Liability Partnerships Act 2000

180
Q

Recommendation 2008/473/EC

A

Auditor’s liability should be limited both to company and 3rd parties except in the case of intentional breaches

181
Q

Nocton v Lord Ashburton

A

Solicitor liable for INM as Lord Haldane emphasised fiduciary relationship

182
Q

What kind of relationships did Hedley point to for AR?

A

Solicitor and client

183
Q

What judge relied on contractual analogy in Smith?

A

Lord Templeman

184
Q

What does Mitchell argue Hedley is?

A

Reassertion of old idea of liability - reassertion of assumpsit duties

185
Q

Conarken Group v Network Rail general

A

Railway bridge, compensation

186
Q

What academic said AR adds little to Caparo and should be removed?

A

Barker

187
Q

Limitation period in contract

A

6 years from date of breach

188
Q

What Recommendation of the EU suggests Auditor’s liability should be limited both to company and 3rd parties except in the case of intentional breaches

A

Recommendation 2008/473/EC

189
Q

Tai Hing Cotton Mill v Liv Chong

A

Nothing to be gained from concurrent liability as tort obligations cannot be greater than contractual

190
Q

Why does Mitchell believe the judges engaged in elaborate analyses where no duty arose at the end?

A

Devlin’s driving force to develop the law of tort, through existing lines of authority , where such opportunity was usually absent

191
Q

Winnipeg Condominium ratio

A

Serious defect likely to damage C allows recovery

192
Q

Bellefield Computer Services v E Turner general

A

Fire extensive damage more likely

193
Q

Aswan Engineering v Ludpine general

A

Pails, waterproofing compound

194
Q

Junior Books v Vietchi judgment

A

HoL allowed claim on Anns but threatened to abolish property damage/PEL distinction

195
Q

Comparative evidence as a traditional ground for denying PEL

A

Other jurisdictions don’t allow it/have problems with it

196
Q

Who said the true distinction between commercial property and residential under Bryan v Moloney lies in inability of residential to spread risk?

A

Partlett

197
Q

Stapleton on Hedley

A

Judges paid very little attention to why liability for PEL might be restricted - only very briefly in Lord Pearce’s speech

198
Q

What case suggested than once an AR is found, no need to consider FJR?

A

Spring v Guardian

199
Q

Threatening statement

A

Welton v North Cornwall DC

200
Q

Who highlighted that judges paid very little attention to why liability for PEL might be restricted in Hedley?

A

Stapleton

201
Q

Todd on Bryan v Moloney

A

Vulnerability can only work if applied to a category of cases, not at large

202
Q

Hedley Byrne v Heller on voluntary assumption

A

Disclaimer removed AR so insisted on voluntary element

203
Q

Why did Lord Bingham say a chain of contracts blocks tort from imposing MR, and in which case?

A

‘Inconsistent with the structure of the contract’; Simaan General v Pilkington Glass

204
Q

McBride and Hughes on Hedley

A

Hedley is not part of negligence at all but actually fiduciary relationships

205
Q

Why no DoC in Curran v NI Coronership Housing Association?

A

Statutory duty was to ensure public money was well-spent, not to protect recipient

206
Q

Anns v Merton LBC judgment

A

‘Material physical damage’ and recovery of repair costs to avoid ‘present or imminent danger to health or safety’

207
Q

What did Lord Devlin argue about Donoghue in Hedley Byrne

A

Showed how law can be developed, not the solution

208
Q

What two cases show other jurisdictions have a much more relaxed approach to claims for PEL?

A

Canadian National Railway v Norsk Pacific Steamship; Shell UK Ltd v Total UK

209
Q

In what case did the HoL threaten to abolish property damage/PEL distinction?

A

Junior Books v Vietchi

210
Q

What case favoured the minority view in Mutual Life v Evatt?

A

Esso Petroleum v Mardon

211
Q

Why was there no AR in Caparo?

A

Info given to allow shareholders to exercise supervisory jurisdiction, not buy more shares

212
Q

What Act shows further development of liability to third parties?

A

Contracts (Rights of Third Parties) Act 1999

213
Q

Candler v Crane

A

Only allowed fiduciary relationship to make INMS actionable - nothing else

214
Q

Spring v Guardian judgment

A

HoL found employer liable as he had specialist knowledge

215
Q

What is the rights-based approach to PEL?

A

Nature of C’s loss determines recoverability - D needs to AR to give C necessary right

216
Q

Patchett v Swimming Pool general

A

Website pool

217
Q

Caparo Industries v Dickman judgment

A

No AR for positive statement NOR for failing to detect fraud due to 3 stage

218
Q

Who highlighted two policy issues with Murphy?

A

Quill

219
Q

An Informer v A Chief Constable judgment

A

No DoC because not FJR - police should be unrestricted as possible in investigating crime and only FINANCIAL damage to C

220
Q

Joint case of Harris to Smith v Eric general

A

Valuation by council, assumption by purchaser (never saw) and confidential report

221
Q

White v Jones is a case concerning what?

A

An omission to act resulting in PEL

222
Q

Cattle v Stockton Waterworks Co judgment

A

One of the first cases where Blackburn J refused PEL claim

223
Q

What do L&O argue in regard to White decision?

A

Could have found a midway solution as Bs had SOME contact with solicitor, so COULD have found mutuality of relationship to satisfy Mustill

224
Q

Reference, ‘kiss of death’

A

Spring v Guardian

225
Q

Owner of a dwelling does not ‘take on work’ for purposes of s.1 defective premises act if he gives instructions for work or employs X

A

Mirza v Bhandal

226
Q

What judge found relationship in Smith ‘akin’ to a contract?

A

Lord Templeman

227
Q

Why was Derry hard to overrule in Hedley?

A

Practice Direction 1966 had not been passed yet, so would need to reinterpret other cases following Derry

228
Q

London Borough of Islington v UCL Hospital general

A

Care of injured by local council

229
Q

What was the CoA methodology in Customs and Excise Commissioners v Barclays?

A

AR & Caparo together & incremental by analogy

230
Q

What do L&O argue in regard to impact of White?

A

Caused few problems in nearly 20 years so no real issue

231
Q

Lord Keith in Murphy on Vietchi

A

It is an example of Hedley - not so far-fetched after Spring and Henderson as sub-contractor knew of reliance

232
Q

D&F Estates v Church Commissioners for England general

A

Plastering

233
Q

Law Society v KPMG judgment

A

Look to purpose behind statutory requirement - to allow LS to decide whether to exercise regulatory powers, so AR

234
Q

Companies Act section 1157

A

Court can relieve an honest and reasonable auditor of liability

235
Q

Murphy v Brentwood District Council general

A

Shallow foundations, cracks

236
Q

Merrett v Babb

A

DoC to prospective purchaser as an individual, rather than needing to sue employer of surveyor

237
Q

Cattle v Stockton Waterworks Co general

A

Flooding, tunnel.

238
Q

Barker on Beever’s rights-based approach

A

How do we know if there is a right, little room for development and no correspondence with judge’s understanding in economic loss cases

239
Q

How does McLachlan J in Canadian National counter economic theory as a way to deny PEL?

A

Unlikely to get reasonably priced insurance, doesn’t account for big losses all falling on one V and can’t always assume liability is assigned to the ‘least-cost risk avoider’

240
Q

What additional requirements were specifically for PEL under Caparo test?

A

Proximity of relationship needed a statement intended for C and that C relied on statement for purpose it was provided

241
Q

What case affirmed D&F Estates v Church Commissioners for England?

A

Department of Education v Thomas Bates

242
Q

Hedley is not part of negligence at all but actually fiduciary relationshipsWho argued

A

McBride and Hughes

243
Q

what did they allow a claim for in Bellefield Computer Services v E Turner ?

A

For loss of property/possessions

244
Q

What case asked if it was reasonable for C not to move to avoid damage?

A

Targett v Torfaen BC

245
Q

What case showed the CoA doubting if anything other than actual knowledge of the defect could lead to denial of recovery?

A

Pearson Education v Charter Partnership

246
Q

Scullion v BoS general

A

Buy-to-let

247
Q

Invercargill v Hamlin

A

New Zealand impose liability on local council without regard to liability of builder

248
Q

What did Lord Hodson require in Hedley Byrne?

A

That D be shown to have some kind of ‘special skills’

249
Q

What judge required D be shown to have some kind of ‘special skills’ in Hedley Byrne?

A

Lord Hodson

250
Q

Esso Petroleum v Mardon

A

Favoured minority in Mutual Life v Evatt

251
Q

Murphy v Brentwood District Council judgment

A

Cracks only manifestation of defectiveness - need PROPERTY damage. Divide up property - e.g. electrical wiring causes a fire damaging fabric of the building, allowing claim for damage to fabric of the building but none for electrical wiring as PEL

252
Q

Specialist insurance syndicate managing agent

A

Henderson v Merrett Syndicates

253
Q

Spartan Stell v Martin general

A

Smelting, power dust

254
Q

How did HoL explain Murphy?

A

Would create ‘transmissible warranty of quality’ and through s.1 Defective Premises Act 1972

255
Q

Henderson v Merrett Syndicates general

A

Specialist insurance syndicate managing agent

256
Q

Why did the HoL refuse to grant a transmissible warranty of quality in Murphy?

A

Places C in a better position than if he brought a contractual/statutory claim, and removed need for C to hire a surveyor

257
Q

What case emphasised that ONLY a fiduciary relationship could make INMS actionable?

A

Candler v Crane

258
Q

What judge in White required a mutuality of relationship?

A

Lord Mustill

259
Q

What case shows Smith applies outside of real property?

A

Killick v PricewaterhouseCoopers

260
Q

Precis v William M Mercer

A

Courts tend to define auditor’s statements narrowly and deny DoC unless auditor knew reliance explicitly and reasonable reliance by C w/o further advice

261
Q

Why was recovery of PEL in Spartan rejected?

A

People should deal with PEL, floodgates, impossible for quantum and loss should be spread out and borne by sufferer

262
Q

Law Society v KPMG general

A

Accountants report on solicitor for LS

263
Q

Railway bridge, compensation

A

Conarken Group v Network Rail

264
Q

Customs and Excise Commissioners v Barclays general

A

Freezing order not done

265
Q

Lord Hoffman and Rodger in Customs and Excise

A

Hadley should not be distorted to make situations fit

266
Q

Lord Mustily in minority in White v Jones

A

Require mutuality of relationship

267
Q

Minority in Mutual Life v Evatt

A

Only need advice to be given on A business occasion or in course of A business

268
Q

Customs and Excise Commissioners v Barclays

A

HoL gave three tests for PEL - Hedley Byrne, Caparo and Heyman (incremental)

269
Q

Dean v Allin general

A

Solicitor AR to lender despite client being borrower

270
Q

What did Lord Millett reject in McFarlane v Tayside?

A

Entirely rejected pure/consequential loss distinction to determine Duty of care

271
Q

Duty for dangerous defects

A

Winnipeg Condominium

272
Q

Beever on Hedley basis

A

Hedley is part of the law of contract

273
Q

An Informer and A Chief Constable general

A

Informer, frozen assets

274
Q

Robinson v PE Jones

A

Primacy of contractual obligation over tortious, but tortious duty not ALWAYS assumed by parties in contractual relationship

275
Q

Mutual Life v Evatt on Hedley

A

Took it for granted that a banker owes a DoC in the circumstances in Hedley

276
Q

Esanda Finance Corporation v Peat Marwick

A

HC of Australia required C to show D knew/ought to have known info would be communicated to C and would cause them to enter into a given transaction

277
Q

Care of injured by local council

A

London Borough of Islington v UCL Hospital

278
Q

What did the disclaimer do in Hedley Byrne?

A

Remove liability and thus no DoC on facts

279
Q

What did the court look carefully at in Williams?

A

What led C to believe AR and what D said and did

280
Q

What do the views of McBride, Hughes and Beever on the basis of Hedley show?

A

Paradox - Hedley has been around for 40 years but still not fully accepted as part of negligence

281
Q

Smith v Eric S Bush judgment

A

Clause excluding liability to purchaser fell foul of UCTA 1977

282
Q

Lord Hoffman in Customs and Excise v Barclays on FJR

A

Better to say AR is ultimately a question of law REFLECTING FJR rather than disapplying it altogether

283
Q

Donoghue v Stevenson general

A

Decomposing snail

284
Q

Williams v Natural Life Health Foods general

A

Letter signed by director

285
Q

Bellefield Computer Services v E Turner judgment

A

Builder not liable for additional damage to building by fire despite building it so more extensive damage was likely

286
Q

What case shows AR in tort to 3rd need not even be of same nature as under contract

A

Dean v Allin

287
Q

Simaan General v Pilkington Glass

A

Chain of contracts blocks tort from imposing AR

288
Q

What fits into first pocket of liability by Stapleton?

A

Hedley

289
Q

What view did the judges take instead in Smith?

A

Law-based view of AR

290
Q

What case made it clear that you cannot disregard a public authority’s exercise of statutory functions when considering AR?

A

Shaddock v Parramatta CC

291
Q

What is Australia’s view on supply of information and test?

A

Need C to show D knew/ought to have known info would be communicated to C and would cause them to enter into a given transaction

292
Q

What are the two ways the existence of a contract can affect Hedley liability?

A

Excluse possibility of tort liability, or imposition will take the tort duty beyond contractual liability bounds

293
Q

What did the court in Hedley approve?

A

Denning LJ’s dissent in Candler

294
Q

What jurisdiction rejects the complex structure theory of PEL?

A

Canada - Winnipeg Condominium v Bird Construction

295
Q

Who gave the reasons to reject PEL in Spartan Stell v Martin?

A

Lord Denning

296
Q

Fire extensive damage more likely

A

Bellefield Computer Services v E Turner

297
Q

What case shows that an exclusion clause may not be sufficient to remove AR?

A

Smith v Eric S Bush

298
Q

McFarlane v Tayside Health Board general

A

Incorrect vasectomy

299
Q

Majority in Mutual Life v Evatt

A

Hedley limited to advisors in the profession of giving advice of kind sought

300
Q

In what case did the HoL highlight three tests for PEL?

A

Customs and Excise Commissioners v Barclays

301
Q

Spring v Guardian general

A

Reference, ‘kiss of death’

Law Second Year (62 decks)

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