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Contributory Negligence

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This problem looks into Susanna’s claims against Figaro, Summy and Angus. She will be claiming compensation in the form of damages for negligent misstatement. In order to evaluate whether these claims are likely to be successful it is necessary to consider the law relating to negligent misstatement. It can be argued that Figaro was deliberately trying to mislead Susanna, as tort of deceit is mentioned in Derry v Peek (1889). It is necessary to prove three elements when bringing a claim against negligence: duty of care, breach of duty and damage, which is the cause of breach of duty and is not to remote. Consideration of these aspects in these stages should be noticed, for example Lord Atkin whom founded the neighbour principle mentioned in the Donoghue v Stevenson (1932). Since Caparo v Dickman (1990) duty of care has to be seen as ‘Fair, just and reasonable’. Breach of duty is observed through the standard of care, which is expected by the defendant and damage is seen through causation and remoteness. In order for Susanna’s claim against Figaro, Summy and Angus, she needs to prove there was a duty of care owed to her, which was then breached and therefore caused damage

The loss that Susanna has suffered is ‘pure economic loss’. This type of loss is more difficult to recover in court than consequential loss resulting from personal injury or damage to property due to policy considerations against the opening of the floodgates. However, in some circumstances a claimant can recover pure economic loss, which results from a negligent misstatement.

The case of Hedley Byrne v Heller [1964] introduced the tort of negligent misstatement into law and set out the circumstances in which it would operate. In that case an advertising agency sought advice from a prospective client’s bank that the client was creditworthy. The bank responded positively. The client was

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