4 parts to committing a tort?
Establishing a duty of care, what are the steps?
What are the common established duty situations?
(No pure psychiatric harm or pure economic loss)
Can establish duty NOT owed e.g no established general duty owed by the police to a suspect regarding the way in which the police conduct their investigation. This is considered in the case of Hill v Chief Constable of West Yorkshire [1989].
Baker v TE Hopkins & Son Ltd - motorists owe duty owed to rescuers
What is 3 part Caparo test?
What situations will Courts not impose duty?
Case re foreseeability of harm?
Bourhill v Young [1943] - pregnant woman heard traffic accident, ran over to see and had miscarriage from shock. Harm was unforeseeable so no duty of care.
“is it reasonably forseeable that my actions harm victim”
Fair just and reasonable?
Policy reasons - Hill v Chief Constable of West Yorkshire [1989] C sued D for failing to catch serial killer who killed their child. Court chose not to impose duty due to floodgates.
What will Courts consider when taking into account if its fair, just and reasonable to impose a duty?
General rule: no duty of care for omissions
What are the exceptions? (2 of them but 2 parts to second 1)
What is the general rule re pure economic loss? Is it the same for consequential economic loss?
No duty imposed for pure. No special rules for consequential economic loss (economic loss arising out of damage).
What is case of Murphy v Brentwood?
The key point in Murphy was that the defects in the house had become apparent before they caused any physical damage to any person or other property. The only thing suffering damage from the cracking and subsiding was the house itself. A claimant in that situation would incur the cost of repairs, or suffer a reduction in value of the property – and the court held that this amounted to pure economic loss. Essentially, the claimant had simply acquired something which was less valuable than the price he paid for it.
This case means the cost of a defective item is not recoverable i.e I bought hairdryer and it blew up. Cost of hairdryer not recoverable but any other property it damaged whilst blowing up is.
What are the two types of economic loss?
Can you recover economic loss that flows from damage to third party property?
No the loss needs to flow from damage to your own property. If borrow suit for wedding from your friend, fire burned suit so you have to hire one. The cost of hiring is pure economic loss.
Economic loss where the loss is not connected to any damage:
What is the case of Hedley Byrne v Heller (test for a special relationship)
The two elements to a special relationship under Hedley Byrne are:
(a) an assumption of responsibility by the defendant;
(b) reasonable reliance by the claimant.
Expansion of special relationship test (with regards the first part of an assumption of responsibility) in Caparo for negligent statement?
The case of Caparo laid down the four criteria to be satisfied for a defendant to have assumed a responsibility towards a claimant:
Negligent statement - will a duty of care be owed in respect of advice given in a social situation?
Generally no duty of care will be owed in respect of advice given in a
social situation because there is no assumption of responsibility. This is confirmed in the case of Chaudhry v Prabhakar [1989]. In this case duty was owed because:
1. the defendant had more experience and knowledge about cars than the claimant, and
2. the claimant had made it clear that she would be relying on his skill and judgment.
In those circumstances this was not simply advice given on a social occasion. The defendant had gone beyond this and had assumed a
responsibility to the claimant.
Connection between Hedley and Caparo?
In order to have duty for PEL, there must be a special relationship between C & D. The test for the 2 elements of a special relationship are from Hedley (being (1) assumption of responsibility and (2) reasonable reliance on advice).
In order to establish if responsibility has been assumed look at Caparo
Extensions of Hedley principle?
White also to do with NEGLIGENT SERVICES rather than STATEMENT (think professional services)
Can D rely on exclusion notice (defence - first establish 1. duty 2. breach 3. causation. Then move to defence)? Need 2 things:
What does UCTA say and who does it relate to?
B2B
Requirement of reasonableness means that it should be fair and
reasonable to allow reliance on the exclusion notice, having regard to all the circumstances.
Elements:
1. Fair
2. Reasonable
3. Regard to all circumstances
What does CRA say re limitation of liability
Consumer 2 Business - Defendant must be acting in Course of business
!
A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.
Different to reasonable as has element of:
1. Unfair
2. Good faith
3. Imbalance of parties’ rights and obligations under the Contract
Case law re fairness test under UCTA
Smith v Eric S Bush; Harris v Wyre Forest District Council [1989] - surveyor tried to exclude liability for any accuracy of survey or any responsibility. Did not pass fairness test.
Factors to consider:
(think: 1. parties bargaining power 2. cheap/easy tog et other advice 3. is it a hard or complex task 4. lots of money job / are they insured)
What is the general rule for psychiatric harm? Does it relate to consequential psychiatric harm? What is pure psychiatric harm?
No duty of care for PPH (exceptions apply). No special rules for consequential.
PPH = psychiatric harm not caused by damage (similar to pure economic loss)