Failing to act when a person is in danger does not give rise to liability - what are the exceptions
A special relationship (parent/child)
3rd parties
Voluntarily assumes responsibility
A D will not owe a duty for 3rd parties but what are the exceptions;-
What does voluntary assumption mean and when does a duty arise if they do
A party assumes responsibility for another - if they do they owe a duty not to make the situation any worse
Product liability and defective products what does product mean
The actual product and can extend to containers packaging and instructions
Consumer Protection Act covers what …
Defective products
Strict liability
Defect products from the retailer is usually covered how?
By contract law under the CRA
THR CONTACT BETWEEN PARTIES ON THE PURCHASE
What is the two stage test for establishing a BREACH in tort
What are the 3 criteria in Caparo
What are some established DOCs
Road Users
Employee and employer
Manufacturer and consumer
Doctor and patient
Solicitor and client
Three steps to establishing a DOC in negligence
What does Negligence require
DOC
BOD
CAUSATION
REMOTENESS
LOSS/Damages
What 3 things are required for RES IPSA LOQUITUR
D must be in control
Would not have occurred without some negligence/proper care
Cause of accident unknown
Caparo Industries plc v Dickman
Caparo Industries plc is a British industrial company with a global presence. Founded in 1968 by Lord Swraj Paul, its primary focus is on the steel industry, encompassing the design, manufacturing, and marketing of steel and niche engineering products.
The company operates internationally from over 40 sites worldwide, serving customers across various sectors. Its business interests include:
* UK: Property & Leisure
* North America: Tubing, Trailers, Property
* India: Automotive Components, Precision Engineering
* United Arab Emirates: Distribution
Historically, Caparo Industries plc was involved in takeovers and had significant fixed assets and investments.
Caparo Industries plc v Dickman [1990] UKHL 2:
While the company itself is involved in manufacturing and engineering, the name “Caparo” is most famously associated with a landmark case in English tort law: Caparo Industries plc v Dickman [1990] 2 AC 605.
Background of the Case:
Caparo Industries plc relied on audited accounts of Fidelity plc when making a takeover bid for the company. The accounts, prepared by Dickman (the auditors), showed a pre-tax profit. However, after the takeover, Caparo discovered that Fidelity had actually made a significant loss. Caparo sued Dickman for negligence, claiming that the auditors owed them a duty of care in preparing the accounts.
The House of Lords’ Decision and the “Caparo Test”:
The House of Lords ultimately rejected Caparo’s claim, establishing a three-part test for determining whether a duty of care exists in negligence cases, particularly in novel situations. This test, often referred to as the “Caparo Test”, requires the claimant to demonstrate:
* Reasonable Foreseeability of Harm: The damage suffered by the claimant must have been a reasonably foreseeable consequence of the defendant’s conduct.
* Example: A driver speeding through a residential area can reasonably foresee that they might cause an accident and injure someone.
* Proximity of Relationship: There must be a sufficiently close relationship between the claimant and the defendant. This goes beyond mere foreseeability and considers the nature of the interaction or connection between the parties.
* Example: A doctor has a proximate relationship with their patient. A manufacturer has a proximate relationship with the end consumer of their product.
* Fair, Just, and Reasonable to Impose a Duty: It must be fair, just, and reasonable for the law to impose a duty of care on the defendant in the specific circumstances. This element allows the courts to consider public policy implications and prevent the imposition of liability in inappropriate cases.
* Example: While harm might be foreseeable and there might be a degree of connection, a court might not find it fair and reasonable to impose a duty on a public authority to prevent all crime.
Significance of the Caparo Test:
The Caparo test became a cornerstone of the law of negligence in the UK and is used by courts to determine the existence and scope of a duty of care in various situations. It moved away from a broader, more expansive approach to duty of care and emphasized a more cautious and incremental development of the law.
Recent Developments:
More recent case law, such as Robinson v Chief Constable of West Yorkshire Police [2018] UKSC 4, has clarified that the Caparo test is most relevant for genuinely novel situations. In cases falling within established categories of duty or closely analogous to them, the existence of a duty is usually determined by reference to precedent.
Strict liability is imposed for what under the Employes Liability Act 1969
Defective Equipment
What are the 3 things needed for vicarious liability
Individual an Employee not an IC
Tort committed
Within the course of their employment
What are the 3 tests to determine if an employee is an employee or an IC in vicarious liability
Vicarious liability (employed)
A relationship akin to employment is liable
The tortious act must be sufficiently closely connected to employment
Hedley Byrne case
The case of Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 is a landmark decision in English tort law, primarily for establishing the principle of negligent misstatement and the recoverability of pure economic loss in certain circumstances.
Here’s a breakdown of the case:
Facts:
* Hedley Byrne, an advertising agency, was considering placing large advertising orders for a client, Easipower Ltd. They were personally liable for the costs of these orders.
* To assess Easipower’s creditworthiness, Hedley Byrne asked their bank to inquire with Easipower’s bank, Heller & Partners.
* Heller & Partners provided a positive credit reference for Easipower, but crucially, it included an express disclaimer stating that the information was given “without responsibility on the part of this Bank or its officials.”
* Relying on this favorable reference, Hedley Byrne placed orders for Easipower. Easipower subsequently went into liquidation, causing Hedley Byrne to suffer significant financial losses (around £17,000).
* Hedley Byrne sued Heller & Partners for negligence in providing the misleading reference.
Outcome and Significance:
While Hedley Byrne ultimately lost the case on the specific facts due to the presence of the disclaimer, the House of Lords made highly significant pronouncements (obiter dicta) that fundamentally changed the law of negligence:
* Recognition of Negligent Misstatement: Prior to Hedley Byrne, it was generally difficult to claim for purely financial loss caused by a negligent statement unless there was a contractual relationship. The House of Lords held that a negligent, though honest, misrepresentation (oral or written) could give rise to an action for damages for economic loss in tort.
* Duty of Care for Pure Economic Loss: The case established that a duty of care could arise in situations where a “special relationship” of trust and confidence exists between the parties, even in the absence of a contract. This was a significant departure, as pure economic loss (financial loss not arising from physical damage) was generally not recoverable in tort.
* “Assumption of Responsibility” Principle: The key element identified by the House of Lords for this “special relationship” was the voluntary assumption of responsibility by the party giving the advice or information, coupled with reasonable reliance on that advice by the recipient.
* This means that if someone with a special skill undertakes to apply that skill for the assistance of another, and they know or ought to know that the other person will rely on their skill and judgment, then a duty of care will arise.
* Effectiveness of Disclaimers: The case also clarified that a clear and effective disclaimer could negate the assumption of responsibility, thereby preventing a duty of care from arising. In Hedley Byrne’s case, the disclaimer saved Heller & Partners from liability.
In summary, Hedley Byrne v Heller is crucial because it:
* Paved the way for claims in negligence for pure economic loss caused by negligent statements (negligent misstatement).
* Introduced the concept of a “special relationship” based on the assumption of responsibility and reasonable reliance.
* Highlighted the importance of disclaimers in limiting liability for advice given.
This case has had a profound impact on professional liability, particularly for those who provide advice or information in a professional capacity, such as accountants, lawyers, and financial advisors. It means that even without a contract, professionals can owe a duty of care to those who reasonably rely on their expertise, potentially leading to liability for economic losses.
What are the necessary elements to a successful negligence claim
DOC
BOD
Causation
Remoteness
Loss and damage
What are the two approaches as to whether a DOC exists
Caparo 3 stage test (new category)
Reasonable foreseeability
Proximity
Fair Just & Reasonable
Firstly court will look at
Incremental & analogy
If a previous precedent exists can it be built upon this will be used first
What test is used for assessing the general standard of care
Reasonable person test
What does an established duty of care mean
Categories of relationships where a DOC automatically exists
What did Donoughue v Stephenson establish
The neighbour principle
You must take reasonable care to avoid acts or omissions that you can reasonably foresee would likely injure your neighbour
Those so closely and directly affected by my act
General rule for Omissions in negligence
General rule is there is no positive duty to act I.e failing to act