Policy Considerations CASES

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Spartan Steel and Alloys Ltd v Martin & Co (Contractors) Ltd [1972] EWCA Civ 3

Contractors negligently cut a power cable, causing a power cut at the plaintiff's factory. The court allowed recovery for physical damage to metal and consequential loss of profit on that metal, but not for pure economic loss on subsequent melts. Facts The plaintiffs, Spartan Steel and Alloys Ltd, operated a stainless steel factory in Birmingham which ran 24 hours a day. The defendants, Martin & Co (Contractors) Ltd, were conducting roadworks nearby. In the course of using an excavator to dig up the road, the defendants’ employees negligently damaged an electric cable. The cable was not owned by the plaintiffs,