The insurance company made these inspections gratuitously in order to promote their business. It would certainly do so when it ought to disclose the damage. Lord Wensleydale said, at p. 199: "He only, who by himself, or another as his agent, employs the attorney to do the particular act in which the alleged neglect has taken place, can sue him for that neglect, ...". It seems to me that it is a question of policy which we, as judges, have to decide. When the builder is himself the owner, they assumed that Bottomley v. Bannister [1932] 1 K.B. [2]. I will take them in order. That cannot be right. Finally I ask myself: If we permit this new action, are we opening the door too much? ]. 79. But jurists Mickey Dias and Hohfeld have shown that rights and duties are jural correlatives. The injured person will always have his claim against the builder. Since that case the courts have had the instance of an architect or engineer. So did Lord Pearson at p. 1054. 533. It was his job to examine the foundations to see if they would take the load of the house. It was his job to examine the foundations to see if they would take the load of the house. This view is in accord with a case in the U.S.A. - Nelson v. Union Wire Rope Corporation (1964) 199 N.E.Rep. The house fell down without any fault of hers. None of those injured would have relied on the architect or the engineer. But Lord Diplock spoke differently. Held: The Council had control of the work and with such control came a responsibility to take care in performing all associated tasks. Applegate v Moss Archer v Moss (1976) 3 BLR 1. During the building of a court house, a lift plunged down six floors with 19 workmen aboard. The damage was done when the foundations were badly constructed. Also, the case of Dutton v Bognor Regis UDC was disapproved.. In parting from the case I would like to pay my tribute to the help we have received from counsel on both sides and the very good research they have done in the course of the case. None of them would have known whether an architect or engineer was employed, or not. The floodgates principle, or the floodgates argument, is a legal principle which is sometimes applied by judges to restrict or limit the right to make claims for damages because of a concern that permitting a claimant to recover in such situations might open the metaphorical "floodgates" to large numbers of claims and lawsuits. 337 . Cited – Dutton v Bognor Regis Urban District Council CA 1972 The court considered the liability in negligence of a Council whose inspector had approved a building which later proved defective. 533 . They are both overruled. 221; Wing v. Moncton, ... APPEAL from a judgment of the British Columbia Court of Appeal 1981 CanLII 452 (BC C.A. So here, the inspector has a right (to inspect), and the builder has a duty to let them inspect. 458 was still authority for exempting him from liability for negligence. Mr. Tapp made a strong point here about reliance. He said that on the authorities the builder, Mr. Holroyd, owed no duty to a purchaser of the house. 245 , we thought that as the owner of the family car was insured she should bear the loss. Council, 1 Q.B. Accordingly it was done away with in Donoghue v. Stevenson [1932] A.C. 562 . In the third place, the council should answer for his failure. Suppose that the defect is discovered in time to prevent the injury. 26 , Lord MacDermott C.J. Candler v Crane, Christmas & Co [1951] 2 KB 164 is an English tort law case on negligent misstatement. This would have been discoverable if proper checks had been made. 337 . (United Kingdom) Ltd. v. W. J. Whittall & Son Ltd. [1972] 1 QB 373, [1972] 2 WLR 299, [1972] 1 All ER 462, [1972] 1 Lloyd's Rep 227. It will be very rarely that the council will be sued or found liable. Was it foreseeable, or not? This was followed by Nield J. in Sharpe v. E. T. Sweeting & Son Ltd [1963] 1 W.L.R. He referred to the recent case of S.C.M. The damage was done when the foundations were badly constructed. In Rondel v. Worsley [1969] 1 A.C. 191 , we thought that if advocates were liable to be sued for negligence they would be hampered in carrying out their duties. Hearse sought to reclaim damages from Chapman due to his alleged contributory negligence; Chapman was found liable to one quarter of the damages. The time has come when, in cases of new import, we should decide them according to the reason of the thing. In the first place, the builder was responsible. Such considerations have influenced cases in the past, as in Rondel v. Worsley [1969] 1 A.C. 191 . The plaintiff, who was aged 17 at the time, suffered very serious personal injuries when playing hooker in a colts rugby match, when a serum collapsed, and his neck was broken. 164, 179 , I put the case of an analyst who negligently certifies to a manufacturer of food that a particular ingredient is harmless, whereas it is, in fact, poisonous: or the case of an inspector of lifts who negligently reports that a particular lift is safe, whereas it is in fact dangerous. (United Kingdom) Ltd. v. W. J. Whittall & Son Ltd. [1971] 1 Q.B. It was he who laid the foundations so badly that the house fell down. DUTTON v. BOGNOR REGIS UNITED BUILDING CO. LTD. Bognor Regis Urban Dist. Hitherto many lawyers have thought that a builder (who was also the owner) was not liable. The professional man must know that the other is relying on his skill and the other must in fact rely on it. They held that if one of the parties to a contract was negligent in carrying it out, no third person who was injured by that negligence could sue for damages on that account. It is certain that a banker or accountant is under such a duty. It has also been suggested for it to be called "commercial loss" as injuries to person or property could be regarded as "economic". The reason is not because those injured relied on him, but because he knew, or ought to have known, that such persons might be injured if he did his work badly. It was disapproved by the House of Lords in Murphy v Brentwood DC and is now bad law[1] except in Canada and New Zealand.[2]. It seems to me that it is a question of policy which we, as judges, have to decide. In Dutton v. Bognor Regis Urban District Councip the English Court of Appeal held that a local authority, exercising a power under its own byelaws to inspect the foundations of a house, owed a duty of care in negligence to the second purchaser of the house. That 19th century doctrine may have been appropriate in the conditions then prevailing. Bognor Regis scores and fixtures - follow Bognor Regis results, fixtures and match details on Soccer24. Chapman appealed the case to the High Court of Australia on August 8, 1961 but it was dismissed as the results of his negligence were deemed reasonably foreseeable. It was disapproved by the House of Lords in Murphy v Brentwood DC and is now bad law except in Canada and New Zealand. So here, the inspector has a right (to inspect), and the builder has a duty to let them inspect. It has been concealed behind such questions as: Was the defendant under any duty to the plaintiff? The inspector must know this, or, at any rate, he ought to know it. He said that such a professional man owed no duty to one who did not employ him but only took the benefit of his work: and that an inspector was in a like position. This specialised set of rules determines the standards against which to measure the legal quality of the services actually delivered by those who claim to be among the best in their fields of expertise. 533 . Dutton v Bognor Regis Urban District Council [1972] 1 QB 373 is an English contract law and English tort law case concerning defective premises and the limits of contract damages. Bognor Regis has been saved as your Local News location Close + 5 miles + 10 miles + 20 miles + 30 miles. In S.C.M. The Court of Appeal held that Mrs Dutton could recover money from the council, as an extension of the principle in Donoghue v Stevenson . Surely he is liable for the cost of repair. In English tort law, an individual may owe a duty of care to another, to ensure that they do not suffer any unreasonable harm or loss. 665 . If a visitor is injured by the negligent construction, the injured person is entitled to sue the builder, alleging that he built the house negligently. So I am not liable." The case also addressed the liability of government bodies, a person's liability for the acts of third parties that he has facilitated, and liability for omissions. On this footing, there is nothing unfair in holding the council's surveyor also liable. [1978] AC 278. 167 referred to. The essence of this proposition, however, is the reliance. Dutton v Bognor Regis Urban District Council. In Hedley Byrne v. Heller it was stressed by Lord Reid at p. 486, by Lord Morris of Borth-y-Gest at pp. Higgins v Arfon Borough Council Dutton v Bognor Regis Urban District Council Date [1972] Citation 1 QB 373 Legislation. The essence of this proposition, however, is the reliance. That certainly supports his submission. The damage done here was not solely economic loss. They are both overruled. But I see no need to reject this claim on this ground. 406 . Contributory negligence on the part of the dock owners was also relevant in the decision, and was essential to the outcome, although not central to this case's legal significance. LAW OF TORT - caselist 1. It was physical damage to the house. To support this proposition, Mr. Tapp brought out a long-forgotten case in the House of Lords, Robertson v. Fleming (1861) 4 Macq. Who ought in justice to bear it? 311, dismissing an appeal from a judgment of Andrews J. The injured person can reply: "I do not care whether you were the owner or not, I am suing you in your capacity as builder and that is enough to make you liable.". Next, I ask: Is there any economic reason why liability should not be imposed on the council? They are liable in either case. Donoghue v Stevenson[1932] UKHL 100 was a landmark court decision in Scots delict law and English tort law by the House of Lords. He referred to the recent case of S.C.M. Then I ask: If liability were imposed on the council, would it have an adverse effect on the work? Ministry of Housing and Local Government v Sharp [1970] 2 QB 223, is an English tort law case concerning assumption of responsibility. If a visitor is injured by the negligent construction, the injured person is entitled to sue the builder, alleging that he built the house negligently. Each must be under the same duty *394 of care and to the same persons. It was owed to the other contracting party, and to no one else. The case itself can be brought within the words of Lord Atkin in Donoghue v. Stevenson: but it is a question whether we should apply them here. Diplock L.J. So also the council's inspector should not be liable for passing the bad work. (United Kingdom) Ltd. v. W. J. Whittall & Son Ltd. [1971] 1 Q.B. Hence they were treated by the courts as being still cases of authority. The later Murphy v Brentwood DC case revealed Denning's reasoning in Dutton to be flawed. Devlin v. Smith, 89 N.Y. 470 (1882) was a seminal case decided by the New York Court of Appeals in the area of product liability law. and so forth. Yet they failed to protect them. 81. 458 is no longer authority. (2d) 769. Prior to the decision, the notion that a party may owe another a duty of care for statements made in reliance had been rejected, with the only remedy for such losses being in contract law. The area of tort law known as negligence involves harm caused by failing to act as a form of carelessness possibly with extenuating circumstances. [3] That is to say: if someone has a right, someone else owes a duty to them. If it is, much the greater responsibility will fall on the builder and little on the council. 253 and Blacker v. Lake and Elliot Ltd (1912) 106 L.T. Dutton v Bognor Regis Urban District Council [1972] 1 QB 373. 337 , some of us thought that economic loss ought not to be put on one pair of shoulders, but spread among all the sufferers. The injured person will always have his claim against the builder. 167, a Scottish case about the responsibility of a lawyer. Williams v Natural Life Health Foods Ltd [1998] Held: D not liable for negligently advising C to open a health foods store in Rugby as he had no direct dealings with C, just C's employer Foster v Action Aviation Ltd [2014] They held that if one of the parties to a contract was negligent in carrying it out, no third person who was injured by that negligence could sue for damages on that account. But ultimately it is a question of policy for the judges to decide. But beyond doubt, the architect and engineer would be liable. The House of Lords overruled the previous position, in recognising liability for pure economic loss not arising from a contractual relationship, introducing the idea of "assumption of responsibility". That appears from Bagot v. Stevens Scanlan & Co. Ltd. [1966] 1 Q.B. The council appealed. Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd [1973] QB 27 is a well-known English Court of Appeal case concerning the recovery of pure economic loss in negligence. and I see no reason why a solicitor is not likewise. I do not think that is right. ... Mt Albert BC v Johnson. It was accepted that the analyst and the lift inspector would be liable to any person who was injured by consuming the food or using the lift. But I hold that the builder who builds a house badly is liable, even though he is himself the owner. O vermied? In Rondel v. Worsley [1969] 1 A.C. 191 , we thought that if advocates were liable to be sued for negligence they would be hampered in carrying out their duties. Yet they failed to protect them. Lord Denning MR's judgment went as follows. It will be very rarely that the council will be sued or found liable. It was disapproved by the House of Lords in Murphy v Brentwood DC and is now bad law except in Canada and New Zealand. But, by virtue of the services they offer and supply, professional people hold themselves out as having more than average abilities. On this footing, there is nothing unfair in holding the council's surveyor also liable. Was the injury direct or indirect? If the manufacturer of an article is liable to a person injured by his negligence, so should the builder of a house be liable. 458 . It was he who laid the foundations so badly that the house fell down. But I see no such reason here for limiting damages. If that were truly the law, I would not have thought it fair to make the council liable when the builder was not liable. But here I see no danger. Caparo Industries PLC v Dickman[1990] UKHL 2 is a leading English tort law case on the test for a duty of care. So did Lord Pearson at p. 1054. Next I ask: is there any reason in point of law why the council should not be held liable? Next I ask: is there any reason in point of law why the council should not be held liable? (1973). The inspector was negligent. First, Mrs. Dutton has suffered a grievous loss. The inspector must know this, or, at any rate, he ought to know it. Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd, commonly known as Wagon Mound , is a landmark tort law case, which imposed a remoteness rule for causation in negligence. So I will consider whether or not the builder is liable. This item appears on. 373 (C.A. Applying the test laid down by Lord Atkin in Donoghue v. Stevenson [1932] A.C. 562, 580-581 , I should have thought that the inspector ought to have had subsequent purchasers in mind when he was inspecting the foundations. ). The council appealed. He suggested, therefore, that although the council might be liable if the ceiling fell down and injured a visitor, they would not be liable simply because the house was diminished in value. 46 . (Hansard, 21 December 1971) Search Help. Dutton v. Bognor Regis United Bldg. The cl… Economic loss is a term of Tort which refers to financial loss and damage suffered by a person such as can be seen only on a balance sheet rather than as physical injury to the person or destruction of property. In the first place, the builder was responsible. There is no sense in maintaining this distinction. The distinction between chattels and real property is quite unsustainable. Judicial creativity is fully in play when a previous decision is overruled. In Launchbury v. Morgans [1971] 2 Q.B. The distinction between chattels and real property is quite unsustainable. Started with this decision. But it was not suited to the 20th century. Lord Wensleydale said, at p. 199: That observation was made in 1861 when the legal profession laboured under the fallacy which I have already mentioned - the fallacy by which it was thought that, when one contracting party was negligent, no one could sue him for that negligence except the other contracting party. I would therefore dismiss this appeal. If the landlord of a house contracted with the tenant to repair it and failed to do it - or did it negligently - with the result that someone was injured, the injured person could not recover: see Cavalier v. Pope [1906] A.C. 428 . See Dutton v. Bognor Regis UDC [1972] 1 QB 373; Hone v. Benson [1978] 248 EG 1013. It was physical damage to the house. Jackson [1977] QB 966; Masters v. Brent London BC [1978] QB 841. Will it lead to a flood of cases which neither the council nor the courts will be able to handle? We had a similar problem some years ago. Would it mean that the council would not inspect at all, rather than risk liability for inspecting badly? Mr. Tapp made a strong point here about reliance. They received public funds for the purpose. There is a good deal in this, but I think the reason is because a subsequent purchaser often has the house surveyed. It is at this point that I must draw a distinction between the several categories of professional men. That 19th century doctrine may have been appropriate in the conditions then prevailing. In Launchbury v. Morgans [1971] 2 Q.B. Their shoulders are broad enough to bear the loss. It continues to be cited as an authority in legal cases, and used as an example for students studying law. Nowadays since Hedley Byrne & Co. Ltd. v. Heller & Partners Ltd. [1964] A.C. 465 it is clear that a professional man who gives guidance to others owes a duty of care, not only to the client who employs him, but also to another who he knows is relying on his skill to save him from harm. That is to say: a person who has a right has duties attached to that right. Dutton v Bognor Regis UDC; E. Ebrahimi v Westbourne Galleries Ltd; H. Hill v CA Parsons & Co Ltd; Hussey v Palmer; I. 46 . He said that on the authorities the builder, Mr. Holroyd, owed no duty to a purchaser of the house. 46 , and our decision was upheld by the House of Lords: [1958] A.C. 240 : see also Miller v. South of Scotland Electricity Board, 1958 S.C. 20, 37-38. But that case only dealt with the manufacturer of an article. Dr. Grant, the plaintiff, contracted a severe case of dermatitis as a result of wearing woolen underpants which had been manufactured by the defendants (Australian Knitting Mills Ltd). Judgment. I would say the same about the manufacturer of an article. We held that each was liable for negligence: see Billings (A. C.) & Sons v. Riden [1957] 1 Q.B. 26 , Lord MacDermott C.J. If he designs a house or a bridge so negligently that it falls down, he is liable to every one of those who are injured in the fall: see Clay v. A. J. Crump & Sons Ltd. [1964] 1 Q.B. Mr. Tapp submitted that the inspector owed no duty to a purchaser of the house. But I hold that the builder who builds a house badly is liable, even though he is himself the owner. It was suggested that they were distinguishable on the ground that they did not deal with chattels but with real property; see by Lord Atkin at p. 598 and by Lord Macmillan at p. 609. In Dorset Yacht Co. Ltd. v. Home Office [1970] A.C. 1004 , we thought that the Home Office ought to pay for damage done by escaping Borstal boys, if the staff was negligent, but we confined it to damage done in the immediate vicinity. It had been regularly inspected by an insurance company, and passed as safe. In previous times, when faced with a new problem, the judges have not openly asked themselves the question: what is the best policy for the law to adopt? In parting from the case I would like to pay my tribute to the help we have received from counsel on both sides and the very good research they have done in the course of the case. In Hedley Byrne v. Heller it was stressed by Lord Reid at p. 486, by Lord Morris of Borth-y-Gest at pp. The reason is that if no limit were set there would be no end to the money payable. During the building of a court house, a lift plunged down six floors with 19 workmen aboard. Grant v Australian Knitting Mills [1936] AC 85. That certainly supports his submission. [original research? The period of limitation (six years) then began to run. (United Kingdom) Ltd. v. W. J. Whittall & Son Ltd. https://en.wikipedia.org/w/index.php?title=Dutton_v_Bognor_Regis_UDC&oldid=974480833, Court of Appeal (England and Wales) cases, All articles that may contain original research, Articles that may contain original research from November 2019, Creative Commons Attribution-ShareAlike License, [1972] 1 QB 373, [1972] 2 WLR 299, [1972] 1 All ER 462, [1972] 1 Lloyd's Rep 227, This page was last edited on 23 August 2020, at 09:13. In previous times, when faced with a new problem, the judges have not openly asked themselves the question: what is the best policy for the law to adopt? Incorporated Council of Law Reporting for England and Wales v A-G; Industrial Development Consultants Ltd v Cooley; M. Maharanee of Baroda v Wildenstein; McGhee v … In neither of those cases, strangely enough, was Robertson v. Fleming, 4 Macq. It sets a limit to damages for economic loss, or for shock, or theft by escaping convicts. That doctrine did not avail manufacturers after 1932 - Donoghue v. Stevenson [1932] A.C. 562 : nor did it avail professional men after 1964 - Hedley Byrne & Co. Ltd. v. Heller & Partners Ltd. [1964] A.C. 465 . The very object was to protect purchasers and occupiers of houses. The case concerned three parties; Chapman who drove negligently, Dr Cherry who assisted him on the side of the road, and Hearse who, in driving negligently, killed Dr Cherry while he was assisting Chapman. None of them would have known whether an architect or engineer was employed, or not. Nor is Otto v. Bolton & Norris [1936] 2 K.B. In nearly every case the builder will be primarily liable. Nowadays we direct ourselves to considerations of policy. The Supreme Court of Illinois, by a majority, held that the insurance company were liable for the negligence of the inspector. In nearly every case the builder will be primarily liable. Never before has a claim been made against a council or its surveyor for negligence in passing a house. Such considerations have influenced cases in the past, as in Rondel v. Worsley [1969] 1 A.C. 191 . I can well see that in the case of a professional man who gives advice on financial or property matters - such as a banker, a lawyer or an accountant - his duty is only to those who rely on him and suffer financial loss in consequence. So I will consider whether or not the builder is liable. In a tone reminiscent of Lord Denning's judgment in Dutton v. Bognor Regis U.D.C., Laskin J. said: "If physical harm had resulted, whether personal injury or damage to property (other than to the crane itself), Washing-ton's 11 liability to the person affected, under its anterior duty as a designer and manufacturer of a negligently-produced Held: The Council had control of the work and with such control came a responsibility to take care in . The doctrine was significantly developed in the case of Donoghue v Stevenson, where a woman succeeded in establishing a manufacturer of ginger beer owed her a duty of care, where it had been negligently produced. This would mean that they might be liable many years hence. He said that even if the inspector was under a duty of care, he owed that duty only to those who he knew would rely on this advice - and who did rely on it - and not to those who did not. HANSARD 1803–2005 → 1970s → 1971 → December 1971 → 21 December 1971 → Written Answers (Commons) → HOUSE OF COMMONS. It was fair and reasonable that the council should be liable to a later purchaser of a house that its surveyor had negligently certified to be sound. Negligence is a failure to exercise appropriate and or ethical ruled care expected to be exercised amongst specified circumstances. Hence they were treated by the courts as being still cases of authority. It was suggested that they were distinguishable on the ground that they did not deal with chattels but with real property; see by Lord Atkin at p. 598 and by Lord Macmillan at p. 609. In the second place, the council's inspector was responsible. So also the council's inspector should not be liable for passing the bad work. Each must be under the same duty *394 of care and to the same persons. The builder cannot defend himself by saying: "True I was the builder; but I was the owner as well. 167 referred to. The liability of a contractor doing work on land was said to be different from the liability of an occupier doing the selfsame work. That is to say: a person who has a right has duties attached to that right. wurde n?mlich nicht nur der Court-of-Appeal-Fall Dutton v. Bognor Regis Urban District Council12 aus dem Jahre 1972, sondern aufgegeben wurden auch die rationes decidendi aus der im Jahre 1990 gerade erst 13 Jahre alten Entscheidung des House of Lords in Sachen Anns v… It laid the foundation of the modern law of negligence, establishing general principles of the duty of care. Hedley Byrne & Co. Ltd. v. Heller & Partners Ltd. S.C.M. The reason is not because those injured relied on him, but because he knew, or ought to have known, that such persons might be injured if he did his work badly. 396-98), and Sachs L.J. It is a House of Lords decision on negligence and marked the start of a rapid expansion in the scope of negligence in the United Kingdom by widening the circumstances in which a court was likely to find a duty of care. Diplock L.J. [3] That is to say: if someone has a right, someone else owes a duty to them. This view is in accord with a case in the U.S.A. - Nelson v. Union Wire Rope Corporation (1964) 199 N.E.Rep. In the 19th century, and the first part of this century, most lawyers believed that no one who was not a party to a contract could sue on it or anything arising out of it. If the owner of land built a house on it and sold it to a purchaser, but he did his work so negligently that someone was injured, the injured person could not recover: see Bottomley v. Bannister [1932] 1 K.B. If the manufacturer or repairer of an article did it negligently, and someone was injured, the injured person could not recover: see Earl v. Lubbock [1905] 1 K.B. 46 . In distinguishing between ratio and obiter. Accordingly it was done away with in Donoghue v. Stevenson [1932] A.C. 562 . So I am not liable." The recent case of Dutton v. Bognor Regis United Building Co. Ltd.' involved a novel fact situation which gave counsel an opportunity to canvass a wide range of arguments for and against the creation of a new duty of It arose out of the property crash in the early 1990s, whereby banks were suing valuers for overpricing houses in order to recover the lost market value. 1 Q.B than risk liability for negligence after the lapse of 30 years was... Do not think it is certain that a party to the reason given was that imposed by house! The injured person will always have his claim against the council would be protected by a,... Beyond doubt, the architect and engineer would be harassed in their or... Was also the owner ) was not solely economic loss, or, at any rate, ought! Who has a claim been made against a council or its surveyor for.. Sharpe v. E. T. Sweeting & Son Ltd. [ 1966 ] 1 A.C. 191 claimed damages against council. 30 years this was recognised damage appears v Bognor Regis Urban District council Date [ 1972 Citation... 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