When is the Caparo/Donoghue v. Stevenson test used ?Watch
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When is the Caparo/Donoghue v. Stevenson test used and what is the difference between them? Is the Caparo test used more often on economic loss whereas Donoghue on physical harm? What is the main difference that sets them apart?
Caparo Industries v Dickinson Plc sets out the basic principles for a case in negligence to be establised (use these as the main points in your answer):
1) D owes V a duty of care
2) D broke that duty
3) D breaking that duty directly caused V's injury (be careful to look at acts and omissions, did D have a duty to act?)
4) D and V had a proximate relationship (this is used to establish the duty, and this is where Caparo failed in their claim)
5) The damages are not too remote (see Spartan Steel v Martin for direct economic injury flowing from the breach)
elawresources also provides a good explanation in their section on tort > negligence
Then came the test in Anns v Merton which was overruled by Murphy v Brentwood. As of today, the test used to establish negligence is Carparo Industries v Dickman according to the 3 steps;
1. Reasonable foreseeability of harm between C and D
2. Proximity of relationship between C and D
3. It is fair, just and reasonable to impose liability according to set policy reasons.
For a claim in Economic loss, it is allowed for consequential but not pure economic loss unless it was made due to a negligent misstatement.
However, for there to be a successful consequential economic loss claim, the 3 elements laid down in the Caparo test must be satisfied on top of the test set in Spartan Steels v Martin.
Hope this helps!