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Flashcards in Tort Law - Pure Economic Loss Deck (301):
1

What does White v Jones do to Hedley?

Stretches it to breaking point

2

What does PEL not extend to in Australia?

Commercial property

3

Welton v North Cornwall DC judgment

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

4

Killick v PricewaterhouseCoopers general

Valuation of shares

5

What case shows judges were dissatisfied with Hedley?

Smith v Eric S Bush

6

Bishop on PEL arguments

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

7

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

Obliterate Hedley

8

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

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

9

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

Different limitation periods in tort and contract

10

Barker on Customs and Excise

AR adds little to Caparo and should be removed

11

Lord Browne-Wilkinson in majority in White v Jones

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

12

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

Hercules Management v Ernst & Young, La Forest J

13

Hedley Byrne v Heller general

Advertising agents, bank, 'without responsibility'

14

Smelting, power dust

spartan Stell v Martin

15

Why is the role of PEL in negligence restricted?

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

16

Riyad Bank v Ahli United Bank general

Kuwait bank chain, distance, not to block tortious obligations

17

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

Tai Hing Cotton Mill v Liv Chong

18

Simpson v Thompson

HoL approved Cattle v Stockton Waterworks Co

19

White v Jones general

Daughter and solicitor

20

Limitation period in tort

6 years from date of damage

21

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'?

Anns v Merton LBC

22

Weir on distinction between Caparo and Smith

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

23

Scullion v BoS judgment

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

24

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

Spring v Guardian

25

Killick v PricewaterhouseCoopers judgment

Smith applies outside of real property to valuation of shares

26

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

Comparative evidence and economic theory

27

Williams v Natural Life Health Foods judgment

Only company had AR as company-headed paper

28

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

Robinson v PE Jones; Henderson v Merrett

29

What was the issue with the language in Hedley?

Very wide language

30

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

Henderson v Merrett Syndicates

31

McFarlane v Tayside Health Board judgment

No damages for upbringing of child

32

What is consequential loss?

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

33

Hercules Management v Ernst & Young

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

34

What three pockets of liability does Stapleton give?

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

35

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

Aswan Engineering v Ludpine

36

London Borough of Islington v UCL Hospital judgment

local council care of V injured by hospital's negligence

37

What two policy issues with Murphy does Quill highlight?

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

38

Lord Templeman in Smith

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

39

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

Lord Nolan

40

Smith v Eric S Bush general

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

41

Henderson on excluding possibility of tort liability

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

42

Byran v Moloney

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

43

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

Lord Millett in McFarlane v Tayside

44

Lord Jaunty and Lord Griffiths in Smith

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

45

Customs and Excise v Barclays on provision of services

Liability is not based on Hedley at all

46

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

Fiduciary relationship

47

Grubb and Millis on Bryan v Moloney

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

48

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

Claim against builder, not local authority

49

Shell UK Ltd v Total UK

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

50

What is recovery of consequential loss governed by?

Remoteness

51

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

Lord Pearce

52

Conarken Group v Network Rail judgment

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

53

Contracts (Rights of Third Parties) Act 1999

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

54

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

Simpson v Thompson

55

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

Companies Act section 1157

56

The Albazero

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

57

Curran v NI Coronership Housing Association judgment

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

58

Pearson Education v Charter Partnership

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

59

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

Patchett v Swimming Pool

60

What case shows the court applying White?

Gorham v BT

61

Canadian National Railway v Norse Pacific Steamship judgment

Recognised 'joint venture' between bridge owner and user

62

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

LJ Aldous

63

Letter signed by director

Williams v Natural Life Health Foods

64

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

Grubb and Millis

65

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

Shell UK Ltd v Total UK

66

What is the difficulty in provision of services cases?

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

67

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

Targett v Torfaen BC

68

L&O on Henderson

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

69

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

No general liability on information provided to 3rd parties

70

What case extended Hedley Byrne to liability to third parties?

Smith v Eric S Bush

71

Cooke on Murphy

Complex structure argument is absurd and transmissible warranty would be great

72

Henderson v Merrett judgment

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

73

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

Lord Browne-Wilkinson

74

Henderson v Merrett Syndicates judgment

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

75

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

Bishop

76

What did the court reject in Hedley Byrne?

That donoghue could just be simply applied

77

Mirza v Bhandal

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

78

Gorham v BT judgment

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

79

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

Precis v William M Mercer

80

What case imposed a duty on a public authority?

Shaddock v Parramatta CC

81

Merrett v Babb on Caparo and Hedley

Can be blended as both should lead to same result

82

What is the difference between Caparo and Smith?

Information in Caparo was not for transaction carried out by C

83

What did La Forest J question in Hercules Management

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

84

What does the case of Murphy assume?

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

85

Department of Education v Thomas Bates

D&F Estates v Church Commissioners for England

86

What were the court keen to avoid in Murphy?

Undermining contract/statute

87

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

Lord Keith in Murphy

88

What statement in Donoghue does Mitchell particularly disagree with?

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

89

Anns v Merton LBC general

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

90

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

Conarken Group v Network Rail

91

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

An Informer v A Chief Constable

92

Winnipeg Condominium v Bird Construction judgment

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

93

Spartan Stell v Martin judgment

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

94

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?

Bishop

95

Gorham v BT general

Pension, widow and children beneficiaries

96

What are the three different approaches to PEL in commonwealth?

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

97

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

Dangerous nature brings in policy debates like deterrence

98

What are the factors considered under Hedley similar to?

Fair, just and reasonable Caparo test

99

Economic theory as a traditional ground to deny PEL

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

100

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

Bryan v Moloney

101

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

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

102

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

Lord Goff in Henderson

103

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

Merrett v Babb

104

What was the 3 stage test from Caparo?

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

105

Bryan v Moloney on knowledge of defect

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

106

Customs and Excise Commissioners v Barclays judgment

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

107

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

Agenda of policy concerns

108

Henderson v Merrett Syndicates general

Lloyds insurance losses

109

Chaudhury v Prabhaker general

Car, aciddent

110

Dutton v Bognor Regis

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

111

Lord Goff and Lowry in Spring

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

112

S.1 Defective Premises Act 1972

Requires premises to be fit for human habitation

113

What fits into second pocket of liability by Stapleton?

Spartan Stell

114

Junior Books v Vietchi general

Floor of warehouse

115

Shaddock v Parramatta CC

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

116

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

Andrews v Schooling

117

D&F Estates v Church Commissioners for England judgment

Defective construction was PEL so no claim - against builder

118

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

Once AR is found, no need to consider FJR

119

Stapleton takes what kind of approach to liability in PEL?

'Pockets' approach

120

Williams v Natural Life Health Foods problem

Why should employee be personally liable but not the director?

121

What case argued Donoghue should have applied in Murphy?

Bryan v Moloney

122

Riyad Bank v Ahli United Bank judgment

Whether or not tortious duty is excluded depends on the facts

123

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

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

124

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

Companies Act 2006, sections 534 - 538

125

Canadian National Railway v Norse Pacific Steamship general

Railway bridge, boat

126

Limited Liability Partnerships Act 2000

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

127

Calvert v William Hill Credit judgment

DoC bc express AR

128

Weir on Hedley

A 'judicial jamboree... Lordships had... smoked a joint on the bus'

129

What is New Zealand's approach to PEL?

Impose liability on local council without regard to liability of builder

130

What case challenged Candler v Crane?

Hedley Byrne v Heller

131

Aswan Engineering v Ludpine judgment

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

132

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

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

133

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?

Lord Hoffman in Customs and Excise v Barclays on FJR

134

What case shows the approach of Australia to PEL claims?

Byran v Moloney

135

Caparo Industries v Dickman general

Auditors, two batches, report

136

Duty for at least some non-dangerous defects

Bryan; Hamlin

137

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

Better for non-statements

138

Beever explores what approach to PEL?

Rights-based

139

Partlertt on Bryan v Moloney

True distinction lies in inability of residential buyer to spread risk

140

Dean v Allin judgment

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

141

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

Lord Devlin

142

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

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

Curran v NI Coronership Housing Association general

Improvement grant

144

What judges found relationship through proximity in Smith?

Lord Jauncey and Lord Griffiths

145

White v Jones judgment

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

146

What is pure economic loss?

When C is financially worse off, but no physical damage

147

What case gave primacy of contractual obligation over tortious

Robinson v PE Jones

148

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

The Albazero

149

Mitchell on Merrett v Babb concerning blending of Caparo and Hedley

'Utterly unconvincing basis for imposing liability' without consistency

150

Companies Act 2006, sections 534 - 538

Auditors can limit liability to companies they audit

151

What fits into third pocket of liability by Stapleton?

Murphy

152

Honore on judgment in Hedley

Going 'to the village church via the moon'

153

Welton v North Cornwall DC general

Threatening statement

154

What do Australia focus on in PEL claims?

Vulnerability of C with builder/architect

155

Patchett v Swimming Pool judgment

'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

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

Only financial damage to C

157

What case made the test for PEL clear?

Customs and Excise Commissioners v Barclays

158

What led to development of the law in PEL?

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

159

Chaudhury v Prabhakar judgment

Allowed AR through relationship in social context because of agency agreement

160

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

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

161

What did Derry v Peek lead to an assumption of?

Innocent negligent misstatement was not actionable

162

Calvert v William Hill Credit general

Close telephone account

163

Who finds Hedley to be based on foreseeability?

Atkey

164

What case put Anns into question?

D&F Estates v Church Commissioners for England

165

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

Esanda Finance Corporation v Peat Marwick

166

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

Looser conception of reliance as you rely on solicitors IN GENERAL

167

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

AR based on an unenforceable agreement for lack of consideration

168

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

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

169

When did Hedley Byrne allow a DoC?i

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

170

Andrews v Schooling

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

171

What academic called complex structure argument absurd?

Cooke

172

Close telephone account

Calvert v William Hill Credit

173

Lord Nolan in White v Jones

Found evidence of daughters speaking to solicitor

174

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

Cattle v Stockton Waterworks Co

175

No duty by builder to subsequent purchaser

D&F Estates; Murphy

176

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

Cooke

177

Targett v Torfaen BC on knowledge of defect

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

178

Winnipeg Condominium v Bird Construction general

Policy issues over complex structure

179

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

Limited Liability Partnerships Act 2000

180

Recommendation 2008/473/EC

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

181

Nocton v Lord Ashburton

Solicitor liable for INM as Lord Haldane emphasised fiduciary relationship

182

What kind of relationships did Hedley point to for AR?

Solicitor and client

183

What judge relied on contractual analogy in Smith?

Lord Templeman

184

What does Mitchell argue Hedley is?

Reassertion of old idea of liability - reassertion of assumpsit duties

185

Conarken Group v Network Rail general

Railway bridge, compensation

186

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

Barker

187

Limitation period in contract

6 years from date of breach

188

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

Recommendation 2008/473/EC

189

Tai Hing Cotton Mill v Liv Chong

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

190

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

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

191

Winnipeg Condominium ratio

Serious defect likely to damage C allows recovery

192

Bellefield Computer Services v E Turner general

Fire extensive damage more likely

193

Aswan Engineering v Ludpine general

Pails, waterproofing compound

194

Junior Books v Vietchi judgment

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

195

Comparative evidence as a traditional ground for denying PEL

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

196

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

Partlett

197

Stapleton on Hedley

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

198

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

Spring v Guardian

199

Threatening statement

Welton v North Cornwall DC

200

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

Stapleton

201

Todd on Bryan v Moloney

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

202

Hedley Byrne v Heller on voluntary assumption

Disclaimer removed AR so insisted on voluntary element

203

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

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

204

McBride and Hughes on Hedley

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

205

Why no DoC in Curran v NI Coronership Housing Association?

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

206

Anns v Merton LBC judgment

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

207

What did Lord Devlin argue about Donoghue in Hedley Byrne

Showed how law can be developed, not the solution

208

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

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

209

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

Junior Books v Vietchi

210

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

Esso Petroleum v Mardon

211

Why was there no AR in Caparo?

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

212

What Act shows further development of liability to third parties?

Contracts (Rights of Third Parties) Act 1999

213

Candler v Crane

Only allowed fiduciary relationship to make INMS actionable - nothing else

214

Spring v Guardian judgment

HoL found employer liable as he had specialist knowledge

215

What is the rights-based approach to PEL?

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

216

Patchett v Swimming Pool general

Website pool

217

Caparo Industries v Dickman judgment

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

218

Who highlighted two policy issues with Murphy?

Quill

219

An Informer v A Chief Constable judgment

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

220

Joint case of Harris to Smith v Eric general

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

221

White v Jones is a case concerning what?

An omission to act resulting in PEL

222

Cattle v Stockton Waterworks Co judgment

One of the first cases where Blackburn J refused PEL claim

223

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

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

224

Reference, 'kiss of death'

Spring v Guardian

225

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

Mirza v Bhandal

226

What judge found relationship in Smith 'akin' to a contract?

Lord Templeman

227

Why was Derry hard to overrule in Hedley?

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

228

London Borough of Islington v UCL Hospital general

Care of injured by local council

229

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

AR & Caparo together & incremental by analogy

230

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

Caused few problems in nearly 20 years so no real issue

231

Lord Keith in Murphy on Vietchi

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

232

D&F Estates v Church Commissioners for England general

Plastering

233

Law Society v KPMG judgment

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

234

Companies Act section 1157

Court can relieve an honest and reasonable auditor of liability

235

Murphy v Brentwood District Council general

Shallow foundations, cracks

236

Merrett v Babb

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

237

Cattle v Stockton Waterworks Co general

Flooding, tunnel.

238

Barker on Beever's rights-based approach

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

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

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

What additional requirements were specifically for PEL under Caparo test?

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

241

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

Department of Education v Thomas Bates

242

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

McBride and Hughes

243

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

For loss of property/possessions

244

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

Targett v Torfaen BC

245

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

Pearson Education v Charter Partnership

246

Scullion v BoS general

Buy-to-let

247

Invercargill v Hamlin

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

248

What did Lord Hodson require in Hedley Byrne?

That D be shown to have some kind of 'special skills'

249

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

Lord Hodson

250

Esso Petroleum v Mardon

Favoured minority in Mutual Life v Evatt

251

Murphy v Brentwood District Council judgment

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

Specialist insurance syndicate managing agent

Henderson v Merrett Syndicates

253

Spartan Stell v Martin general

Smelting, power dust

254

How did HoL explain Murphy?

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

255

Henderson v Merrett Syndicates general

Specialist insurance syndicate managing agent

256

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

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

257

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

Candler v Crane

258

What judge in White required a mutuality of relationship?

Lord Mustill

259

What case shows Smith applies outside of real property?

Killick v PricewaterhouseCoopers

260

Precis v William M Mercer

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

Why was recovery of PEL in Spartan rejected?

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

262

Law Society v KPMG general

Accountants report on solicitor for LS

263

Railway bridge, compensation

Conarken Group v Network Rail

264

Customs and Excise Commissioners v Barclays general

Freezing order not done

265

Lord Hoffman and Rodger in Customs and Excise

Hadley should not be distorted to make situations fit

266

Lord Mustily in minority in White v Jones

Require mutuality of relationship

267

Minority in Mutual Life v Evatt

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

268

Customs and Excise Commissioners v Barclays

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

269

Dean v Allin general

Solicitor AR to lender despite client being borrower

270

What did Lord Millett reject in McFarlane v Tayside?

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

271

Duty for dangerous defects

Winnipeg Condominium

272

Beever on Hedley basis

Hedley is part of the law of contract

273

An Informer and A Chief Constable general

Informer, frozen assets

274

Robinson v PE Jones

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

275

Mutual Life v Evatt on Hedley

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

276

Esanda Finance Corporation v Peat Marwick

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

Care of injured by local council

London Borough of Islington v UCL Hospital

278

What did the disclaimer do in Hedley Byrne?

Remove liability and thus no DoC on facts

279

What did the court look carefully at in Williams?

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

280

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

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

281

Smith v Eric S Bush judgment

Clause excluding liability to purchaser fell foul of UCTA 1977

282

Lord Hoffman in Customs and Excise v Barclays on FJR

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

283

Donoghue v Stevenson general

Decomposing snail

284

Williams v Natural Life Health Foods general

Letter signed by director

285

Bellefield Computer Services v E Turner judgment

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

286

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

Dean v Allin

287

Simaan General v Pilkington Glass

Chain of contracts blocks tort from imposing AR

288

What fits into first pocket of liability by Stapleton?

Hedley

289

What view did the judges take instead in Smith?

Law-based view of AR

290

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

Shaddock v Parramatta CC

291

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

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

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

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

293

What did the court in Hedley approve?

Denning LJ's dissent in Candler

294

What jurisdiction rejects the complex structure theory of PEL?

Canada - Winnipeg Condominium v Bird Construction

295

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

Lord Denning

296

Fire extensive damage more likely

Bellefield Computer Services v E Turner

297

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

Smith v Eric S Bush

298

McFarlane v Tayside Health Board general

Incorrect vasectomy

299

Majority in Mutual Life v Evatt

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

300

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

Customs and Excise Commissioners v Barclays

301

Spring v Guardian general

Reference, 'kiss of death'

Decks in Law Second Year Class (62):