economic loss CASES

Lady justice next to law books

White v Jones [1995] UKHL 5

A solicitor was instructed to create a new will benefiting the testator's daughters but negligently delayed until the testator's death. The daughters, who received nothing, sued the solicitor. The House of Lords held the solicitor owed a duty of care to the intended beneficiaries. Facts Mr Barratt, having previously disinherited his daughters (the plaintiffs) after a family dispute, reconciled with them. On 17 July 1986, he instructed his solicitors (the defendants) to draft a new will to include legacies of £9,000 for each daughter. The solicitor handling the matter negligently failed to act on these instructions with due expedition. Numerous

Lady justice with law books

Spring v Guardian Assurance plc [1995] 2 AC 296

An ex-employee sued his former employer for providing a negligent and damaging reference which caused him economic loss. The House of Lords held that an employer owes a duty of care to an employee when preparing a reference for a third party. Facts The plaintiff, Mr Spring, was dismissed from his role as a company sales director for Guardian Assurance plc (‘Guardian’). He then sought to work for another insurance company, Scottish Amicable, in a similar capacity. Under the rules of the regulatory body, the Life Assurance and Unit Trust Regulatory Organisation (LAUTRO), Scottish Amicable was required to seek a

Lady justice with law books

Parkinson v St James and Seacroft University Hospital NHS Trust [2001] EWCA Civ 530

A mother sued for negligent sterilisation resulting in the birth of a child with significant disabilities. The Court of Appeal held that while the ordinary costs of raising a healthy child are not recoverable, the additional costs associated with the child's disability are. Facts The claimant, Ms Parkinson, a mother of four, underwent a sterilisation operation performed by a surgeon employed by the defendant NHS Trust. The procedure was carried out negligently. Subsequently, she became pregnant and gave birth to her fifth child, Christopher. Christopher was born with significant disabilities, including autism and behavioural difficulties, although these were not caused

Law books on a desk

D & F Estates v Church Commissioners for England [1988] UKHL 4 (14 July 1988)

Lessees of a flat discovered defective plasterwork installed by subcontractors years earlier. They sued for the cost of repairs. The House of Lords held that the builder was not liable in negligence for this pure economic loss, distinguishing it from physical damage. Facts The first defendants, the Church Commissioners, commissioned the building of a block of flats, employing a main contractor. The main contractor engaged subcontractors to carry out the plastering work. The plaintiffs were the lessees of one of the flats. Some years after taking possession, the plaintiffs discovered that the plaster on the walls and ceilings was loose