Professional Negligence: Statements of Case, Preparing witness evidence for a professional negligence claim, Glossary of Key Negligence Legal Terminology, Professional Negligence Solicitors & Barristers. 4 Middle Temple Lane, Temple, London EC4Y 9AA, How to start a Professional Negligence Claim. Citations: [1990] 2 AC 605; [1990] 2 WLR 358; [1990] 1 All ER 568; [1990] BCC 164. In this case, the question as to when duty of care arises in … . (iii) Lord Bridge had explained this in Caparo Industries plc v. Dickman [1990] 2 A.C. 605, but the three-stage test had been treated as a blueprint for deciding cases when it was clear that it was not intended to be any such thing. Facts. In order for a duty of care to arise in negligence: • Caparo, a small investor purchased shares in a company, relying on the accounts prepared by. Caparo Industries Plc v Dickman [1990] 2 AC 605 (case summary) Lord Bridge's three stage test for imposing a duty of care, known as the Caparo test: Under the Caparo test the claimant must establish: Caparo Industries plc v Dickman [] UKHL 2 is a leading English tort law case in Caparo was the scope of the assumption of responsibility, and what the. P had relied on a report made with regard to the status of the company and purchased more shares in F than they would have previously and ultimately took over the company. [1988] BCLC 387, Times, 5 August 1988 Caparo Industries Plc v Dickman (1990) Facts: P sued D (directors and auditors of a company, F, that was the subject of an acquisition). Which professionals can I bring a claim against for negligence? Fidelity plc (F plc) auditors had prepared an obligated annual report under section 236 and 236 of the Companies Act 1985. There was no proximity as the defendant’s knew nothing about Caparo. 4 Middle Temple Lane, Our team have expertise in advising on claims for compensation against professionals that have fallen below the standard expected, which causes clients financial or personal loss. Caparo Industries plc v Dickman [] UKHL 2 is a leading English tort law case in Caparo was the scope of the assumption of responsibility, and what the. CASE SUMMARY. City of London EC4Y 9AA. Specific legal advice about your particular circumstances should always be sought. Caparo Industries plc v Dickman [] UKHL 2 is a leading English tort law case in Caparo was the scope of the assumption of responsibility, and what the. 2) [2005], A-G of Belize v Belize Telecom Ltd [2009], Actionstrength Ltd v International Glass Engineering [2003], Adamson v Motor Vehicle Insurance Trust [1956, Australia], Adealon International Corp Proprietary v Merton LBC [2007], Adler v Ananhall Advisory and Consultancy Services [2009], Al-Mehdawi v Secretary of State for the Home Department [1989], Alcock v Chief Constable of South Yorkshire Police [1991], Alfred McAlpine Construction v Panatown [2001], Allam & Co v Europa Poster Services [1968], Amalgamated Investments and Property Co v Texas Commerce Bank [1982], Amiri Flight Authority v BAE Systems [2003], Anderson v Pacific Fire & Marine Insurance Co [1872], Anglo Overseas Transport v Titan Industrial Group [1959], Anisminic v Foreign Compensation Commission [1969], Anns v Merton London Borough Council [1978], Anton’s Trawling Co v Smith [2003, New Zealand], Ashley v Chief Constable of Sussex Police [2008], Assange v Swedish Prosecution Authority [2011], Assicuriazioni Generali v Arab Insurance Group [2002], Associated Provincial Picture Houses v Wednesbury Corporation [1948], Attica Sea Carriers v Ferrostaal Poseidon [1976], Attorney General (on the relation of Glamorgan County Council) v PYA Quarries [1957], Attorney General for Jersey v Holley [2005], Attorney General of Ceylon v Silva [1953], Attorney General v De Keyser’s Royal Hotel [1920], Attorney General v Jonathan Cape Ltd 1976, Attorney-General of Hong Kong v Humphrey’s Estate [1987], Attourney General v Body Corp [2007, New Zealand], B&Q v Liverpool and Lancashire Properties [2001], Baird Textile Holdings Ltd v Marks and Spencers Plc [2001], Banco de Portugal v Waterlow & Sons [1932], Bank of Ireland Home Mortgages v Bell [2001], Barclays Wealth Trustees v Erimus Housing [2014], Barnard v National Dock Labour Board [1953], Barnett v Chelsea and Kensington Hospital [1969], Barrett v Enfield London Borough Council [1999], Bedford Insurance Co v Instituto de Resseguros do Brazil [1984], Berrisford v Mexfield Housing Co-operative Ltd [2011], Birmingham Citizens Permanent Building Society v Caunt [1962], Birmingham Midshires Mortgage Services v Sabherwal [2000], Blackhouse v Lambeth London Borough Council [1972], Blackpool Aero Club v Blackpool Borough Council [1990], Blythe & Co v Richards Turpin & Co (1916), Boddington v British Transport Police [1998], Bolitho v City & Hackney Health Authority [1997], Boston Deepsea Fishing Co v Farnham [1957], Bristol & West Building Society v Ellis [1996], Bristol & West Building Society v Henning [1985], Bristol & West Building Society v Mothew [1998], British Fermentation Products v Compare Reavell [1999], British Oxygen Co v Minister of Technology [1971], British Westinghouse v Underground Electric Railway [1912], Bruton v London & Quadrant Housing Trust [2000], Buckland v Guildford Gaslight & Coke Co [1949], Bushell v Secretary of State for the Environment [1981], Butler Machine Tool Co v Ex-cello-corp [1979], C-110/05 Commission v Italy (Motorcycle Trailers) [2009], CAL No. According to the House of Lords, in order for a duty of care to arise in negligence: Do you have a claim against a professional? 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RESPONDENTS AND DICKMAN AND OTHERS APPELLANTS 1989 Nov. 16, 20, 22, 23, 27, 28; 1990 Feb. 8 Lord Bridge of Harwich , Lord Roskill , Lord Ackner , Lord Oliver of Aylmerton and Lord Jauncey of Tullichettle Their Lordships took time for consideration. 14 v Motor Accidents Insurance Bureau [2009, Australia], Calico Printers’ Association v Barclays Bank (1931), Caltex Oil Pty v The Dredge “WillemStad” [1976, Australia], Cambridge Water v Eastern Counties Leather [1994], Captial and Counties Plc v Hampshire County Council [1996], Car & Universal Finance v Caldwell [1965], Case 10/68 Società Eridania v Commission [1969], Case 11/70 Internationale Handelgesellschaft [1970], Case 112/84 Michel Humblot v Directeur des services fiscaux [1985], Case 13/83 Parliament v Council (Transport Policy) [1985], Case 148/77 Hansen v Hauptzollamt de Flensburg (Taxation of Spirits) [1978], Case 152/84 Marshall v Southampton Health Authority (Marshall I) [1986], Case 167/73 Commission v France (French Shipping 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Gallagher Ltd [1994], Cuckmere Brick Co v Mutual Finance [1971], Cunliffe-Owen v Teather and Greenwood [1967], Curtis v Chemical Cleaning & Dyeing Co [1951], Customs and Excise Commissioners v Barclays Bank Plc [2006], Daraydan Holidays v Solland International [2005], Darlington Borough Council v Wiltshier Northern [1995], Davis Contractors v Fareham Urban District Council [1956], Desmond v Chief Constable of Nottinghamshire Police [2011], Dimes v Grand Junction Canal Proprietors [1852], Doody v Secretary of State for the Home Department [1993], Dunlop Pneumatic Tyre Co v New Garage and Motor Co [1915], Edgeworth Construction Ltd v Lea [1976, Canada], Entores v Miles Far East Corporation [1955], Environment Agency v Empress Car Co [1999], Equal Opportunities Commission v Secretary of Sate for Employment [1994], Equity & Law Home Loans v Prestidge [1992], Erlanger v New Sombrero Phosphate Co [1878], Esso Petroleum v Customs and Excise Commissioners [1976], Fundamental rights and the European Union, Primacy and competence of the European Union, European Asian Bank v Punjab Sind Bank (No. Caparo Industries purchased shares in Fidelity Plc with faith they would be successful as the accounts that the company stated showed the company had made a pre-tax profit of £1.3 million. The Caparo Industries Plc v. Dickman was a landmark case regarding the test for a duty of care. The fact of the case: Caparo Industries plc v Dickman (1990) is a leading tort law case which extended the neighbour principle applied in the Donoghue v Stevenson by adding the third test of “justice, fairness and reasonability” to ascertain duty of care in negligence cases. Whereas Caparo starts from the assumption no duty is owed unless the criteria of the three stage test is satisfied. 2) [1994], R v International Stock Exchange of the UK and RoI, ex p Else (1982) Ltd [1993], R v Kent Police Authority, ex p Godden [1971], R v Leicester City Justices, ex p Barrow [1991], R v Lord President of the Privy Council, ex p Page [1993], R v Metropolitan Police Commissioner, ex p Blackburn [1968], R v North & East Devon Health Authority, ex p Coughlan [2003], R v Panel on Take-Overs and Mergers, ex p Datafin [1987], R v Port of London Authority, ex p Kynoch [1919], R v Race Relations Board, ex p Selvarajan [1975], R v Secretary of State for Defence, ex p Smith [1996], R v Secretary of State for Employment ex parte Equal Opportunities Commission [1994], R v Secretary of State for Foreign Affairs ex parte Everett [1989], R v Secretary of State for Foreign Affairs, ex p Lord Rees-Mogg [1994], R v Secretary of State for Foreign Affairs, ex p World Development 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Teheran-Europe v ST Belton (Tractors) [1968], The Queen v Beckford [1988, Privy Council, Jamaica], Tilden Rent-A-Car Co v Clendenning [1978, Canada], Titchener v British Railways Board [1983], Tomlinson v Congleton Borough Council [2003], Trevor Ivory Ltd v Anderson [1992, New Zealand], Trim v North Dorset District Council [2011], Universe Tankships of Monrovia v International Transport Workers Federation [1983], Van Colle v Chief Constable of Hertfordshire Police [2008], Vernon Knight Association v Cornwall County Council [2013], Verschures Creameries v Hull and Netherlands Steamship Co [1921], Victoria Laundry v Newman Industries [1949], Victorian Railways Commissioner v Coultas [1888], Videan v British Transport Commission [1963], Walker v Northumberland City Council [1994], Walters v North Glamorgan NHS Trust [2003], Wandsworth London Borough Council v Railtrak Plc [2002], Wandsworth London Borough Council v Winder [1985], Watson v British Boxing Board of Control [2001], Weller v Foot and Mouth Disease Research Institute [1966], West Bromwich Albion Football Club v El-Safty [2006], William Sindall v Cambridgeshire Country Council, Williams v Natural Life Health Foods Ltd [1998], Wilsher v Essex Area Health Authority [1988], Winter Garden Theatre (London) v Millennium Productions [1948], Woodar Investments v Wimpy Construction [1980], ZH v Commissioner of Police of the Metropolis [2013], Caparo, a small investor purchased shares in a company, relying on the accounts prepared by Dickman, Caparo lost money due to the accounts being negligently prepared, Could Dickman be liable to Caparo for their negligent preparation of relied upon company accounts; given there was no contractual relationship between the two parties, No liability under a test of duty, ‘the Caparo test’, claim failed, Allowing claim would allow “liability in an indeterminate amount for an indeterminate time to an indeterminate class”, In claims for economic loss, there must be a common purpose, a proximate relationship, known communication with expected reliance and actual reliance. 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