Extension of recoverable losses in negligence
- William Kanaan
- Jun 11
- 1 min read
The Supreme Court handed down a significant decision in the context of negligence. C, a property developer, engaged D as a structural design consultant for two residential developments. After selling the properties, C discovered structural defects and undertook remedial works, even though it was not legally obliged to do so and no third-party claims had been made.
C then brought legal proceedings against D, suing in negligence to recover the costs of the remedial works.
The Supreme Court addressed four main issues, the two important issues for the purposes of this note being:-
Voluntary losses and duty of care. D argued that C's losses were “voluntarily incurred” and thus not recoverable. The Court rejected this argument, stating that there is no legal rule barring recovery of voluntarily incurred repair costs. The key test is whether the decision to undertake the works was reasonable.
Contribution claims without third-party claims. D argued that C could not claim under the Civil Liability (Contribution) Act 1978 without a third-party claim or settlement. The Court disagreed, confirming that a contribution claim can be made even without a third-party claim, as long as the claimant has incurred a loss for which another party may be liable.
This ruling broadens the scope of recoverable losses in negligence.
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