Economic loss, transmissible warranties and extensions to the boundaries of Murphy v Brentwood

Pigott, Ashley

Economic loss, transmissible warranties and extensions to the boundaries of Murphy v Brentwood - 2005 - Construction Law Journal 21(2) (2005) 95,101(7) .

Discusses differing HL judgments on the subject of the accrual of a duty of care to prevent economic loss, noting that a clear position still remains uncertain. Examines the opposed judgments in "Samuel Payne v John Setchell Ltd" (TCC, X121433) and "Tesco Stores Ltd v Costain Construction Ltd" ([2003] EWHC 1487 (TCC), [2003] CILL 2062) which both considered the extent to which builders and designers in construction cases should be held liable for losses classified as economic. Illustrates how the approach in "Samuel Payne" to the imposition of a duty of care in respect to economic loss is consistent with the reasoning in "Murphy v Brentwood DC" (HL, Abs43321), whilst the approach in "Tesco" is consistent with "Hedley Bryne and Co Ltd v Heller and Partners Ltd" (HL, [1963] 2 ALL ER 575) and "Pirelli General Cable Works Ltd v Oscar Faber and Partners" (HL, [1983] 1 All ER 65).


MURPHY V BRENTWOOD DC
HEDLEY BYRNE AND CO LTD V HELLER AND PARTNERS LTD
PAYNE AND OTHERS V JOHN SETCHELL LTD
TESCO STORES LTD V COSTAIN CONSTRUCTION LTD
DONOGHUE V STEVENSON
ANNS AND OTHERS V MERTON LBC
PIRELLI GENERAL CABLE WORKS LTD V OSCAR FABER AND PARTNERS
HENDERSON V MERRETT SYNDICATES LTD
WHITE V JONES
DOE V BATES