Distinguishing between property damage and pure economic. Pages in category 1982 in case law the following 34 pages are in this category, out of 34 total. Even here, the house of lords did little more than acknowledge the possibility of an. Junior books v veitchi 1982, hl junior books made a contract for the construction of a warehouse. The junior books contracted with a business to lay a composite flooring in their factory. Abu dhabi gas liquefaction co ltd v eastern bechtel corporation and another eastern bechtel corporation and another v ishikawajimaharima heavy industries co ltd 1983 21 blr 117. Junior books ltd v veitchi co ltd 1983 1 ac 520 was a house of lords judgment on whether a duty of care in delict exists between a. The nominated subcontractor exception again concerns the closeness of the relationship between the subcontractor and the building owner. Junior books v veitchi 1983 ac 520 sidestepped this problem, but see now the aliakmon 1985 1 qb 350 per lord donaldson mr. Junior books ltd v veitchi co ltd 1983 1 ac 520 was a house of lords judgment on whether a duty of care in delict exists between a contractor or subcontractor and an employer this scottish case initially caused some excitement amongst english academic lawyers who thought it heralded the fusion of contract and tort into a single law of obligations. Recovery for pure economic loss in english law, arising from negligence, has traditionally been limited.
I entirely follow that if the conclusion is reached that the very purpose of providing the information is to serve as the basis for making investment decisions or giving investment advice, it is not difficult then to. Distinguishing between property damage and pure economic loss. Setting a reading intention helps you organise your reading. List of cases zimbabwe legal information institute. An example of such provisions is the implied terms under the sale of goods act 1979 which can benefit the seller as well as the buyer. Junior books ltd, 1982 3 wlr 474, provides for a more general rule. Hl 15 jul 1982 april 7, 2019 admin off construction, negligence, scotland, references.
There was no direct contract between junior books and veitchi veitchi laid the flooring and within two years it was a mess with cracks etc junior books had to completely replace the floor this classified as pure economic loss junior books did not sue the main contractors, decided to go forward in delict tried to establish a duty of care. In that case, the court found that a nominated subcontractor was held to owe a duty in tort to the building owner for. Cf junior books ltd v veitchi ltd 1983 1 ac 520 at 540 per lord roskill. Junior books ltd v veitchi co ltd 1983 1 ac 520 was a house of lords judgment on whether a duty of care in delict exists between a contractor or. May 08, 20 the decisions in anns v merton london borough council 1978 and junior books v veitchi 1983 have been heavily criticised. Muirhead v industrial tank specialists ltd 1985, 1986. The development and extension of the law of tort probably reached its climax in the house of lords in junior books ltd v veitchi co ltd in 1983.
Junior books ltd v veitchi co ltd 1982 3 all er 201 united. Junior books ltd v veitchi co ltd 1982 ukhl 4 15 july. The recovery of pure economic loss in negligencean. Junior books contracted with a business to lay a composite flooring in their factory. Junior books limited respondents go to while that was the actual decision in donoghue v. Morrison steamship co ltd v greystoke castle cargo owners 1947 ac 265 at 281282 per lord roche, at 297 per lord porter, and at 310311 per lord uthwatt. Junior books ltd v veitchi co ltd wikimili, the free.
Junior books ltd v veitchi co ltd 1982 3 all er 201 hl junior books v veitchi co ltd 1983 1 ac 520. Stevenson, it wasbased on a much wider principle embodied in passages in the speech oflord atkin, which have been quoted so often that i do not find itnecessary to quote them again here. The exception arose in the scottish case of junior books ltd v veitchi limited 1983. The court says where harm is so great that a reasonable man would guard against it, the claimant can claim. Negligently infliclicted economic loss elaw resources. They told the building contractor that they wanted flooring to be supplied by the defendant, who was consequently a nominated subcontractor. The defendants were specialists in flooring and were subcontractors to lay a floor in a factory which was to be used by the plaintiffs.
The reason for this was because the courts found that the relationship between the nominated subcontractor and the building. Put shortly, that wider principle isthat, when a person can or ought to appreciate that a careless act oromission on. Firstly, the decisions open the floodgates to unlimited claims, where a defendant may have no relationship with the claimant. Denning became best known as a result of his report into the profumo affair. Junior books ltd v veitchi co ltd 1983 1 ac 520 was a house of lords judgment on whether a duty of care in delict exists between a contractor or subcontractor and an employer. Have the conditions for recovering pure economic loss in. The plaintiff had employed the main contractors to construct a factory and they nominated the defendants, as specialist sub contractors, to lay. On 15 july 1982, the house of lords delivered junior books ltd v veitchi co ltd 1982 ukhl 4 15 july 1982. Law notes 312 negligence liability junior books v veitchi.
Junior books ltd v veitchi co ltd summary lawteacher. Sharpe damages for loss of opportunity to bargain 1982 2 ox. All publications university of toronto faculty of law. Junior books ltd v veitchi co ltd a firm of building contractors, who were engaged by the plaintiff to construct a factory, subcontracted the laying of the flooring in the factory to a firm of specialist flooring contractorsthe defendant. Webster v lord advocate 1985 sc 173 university of glasgow. Junior books ltd v the veitchi co ltd 1983 21 blr 66 house of lords lord fraser of tullybelton, lord russell of killowen, lord keith of kinkel, lord roskill and. The house of lords eventually ruled in junior books v veitchi 1982 3 all er 201 that pure economic loss was recoverable. Where there is sufficient proximity between the parties there may be an exception to the rule that there is no recovery for loss which is not consequent upon physical loss. The work was defective so junior books sued veitchi, not the main. Recent and prospective legislative developments in products liability, workshop on consumer and commercial law toronto. Compensation for economic loss at the house of lords david cohent the decision of the house of lords in junior books ltd. One of the most radical manifestations of this expansive reliance on the above test was junior books ltd v veitchi co ltd 1982 3 all er 201 hl where the house of lords held that a duty of care was owed by flooring subcontractors, who were liable to the owner of the factory whose floor they negligently laid.
It was the main reason for rejecting theclaim in the scottish case of dynamco ltd. Put shortly, that wider principle isthat, when a person can or ought to appreciate that a careless. Tort caparo v dickman essay writing service hire a. Junior books ltd v veitchi co ltd 1982 3 all er 201. The decision of the house of lords in junior books ltd. That case was on appeal to the house of lords from scotland. April 7, 2019 admin off construction, negligence, scotland.
John profumo was the secretary of state for war with the british government. The flooring was so defective that the warehouse was unusable until the floor was replaced causing considerable expense. In that case, the court found that a nominated subcontractor was held to owe a duty in tort to the building owner for economic losses. Junior books ltd v veitchi co ltd 1983 1 ac 520 tort law negligence duty of care damages facts the defendants were specialists in fl. The work was defective so junior books sued veitchi, not the. There, the plaintiff owned a factory in which the defendant sub.
Lord keith of kinkel, lord brandon of oakbrook, lord brightman, lord griffiths and lord ackner. Cited junior books v veitchi co ltd hl 1983 ac 520, 1982 3 wlr 477, 1982 3 all er 201, bailii, 1982 ukhl 4, bailii, 1982 ukhl 12, 1982 com lr 221, 1982 sc hl 244, 1982 slt 492, 21 blr 66 the defendant was a specialist subcontractor brought in to lay a floor. Have the conditions for recovering pure economic loss in tort. Junior books ltd v the veitchi co ltd 1983 21 blr 66. The house of lords held that there was sufficient proximity between junior books and veitchi to establish a duty of care and no reason to restrict that duty. Junior books ltd v veitchi co ltd 1982 sc hl 244 united. The decisions in anns v merton london borough council 1978 and junior books v veitchi 1983 have been heavily criticised.
Economic loss generally refers to financial detriment that can be seen on a balance sheet but not physically. Junior books ltd v veitchi co ltd 1982 ukhl july 15, 1982 legal helpdesk lawyers on 15 july 1982, the house of lords delivered junior books ltd v veitchi co ltd 1982 ukhl 4 15 july 1982. The recovery of pure economic loss in negligencean emerging. Gorham v british telecommunications plc 2000 ewca civ 234. Easing the right to recover for pure economic loss case note 1983 uqlawjl 8. Negligence in building design and construction designing. Mcfarlane v tayside health board 2000 2 ac 59 parkinson v st james 2001 3. Junior books ltd v the veitchi co ltd 1983 21 blr 66 house of lords lord fraser of tullybelton, lord russell of killowen, lord keith of kinkel, lord roskill and lord brandon of oakbrook. Junior books ltd v veitchi co ltd 1982 ukhl peter ogrady. In article iii of the condescendence the pursuers aver that late in 1972 cracks began to appear in. Development of the law of negligence 1932 to 1988 designing. Negligence duty of care pure economic loss flashcards. Junior books ltd v veitchi co 1983 subcontractors lay a factory for a firm that has been employed by the factorys owner.
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