It is for the Court to decide whether the breach of duty was the cause of a loss or simply the occasion for it by the application of common sense. A breach of contract, to found recovery, must be shown to have been ‘an ‘effective’ or ‘dominant’ cause of [the] loss.’
The law distinguishes between a mere precondition or occasion for a loss and an act which gives rise to a liability to make it good by way of damages
Judges:
Lord Justice Glidewell, Evans LJ, Waite LJ
Citations:
Times 14-Jan-1994, [1994] 1 WLR 1360, [1995] 1 All ER 16, [1993] EWCA Civ 3
Links:
Jurisdiction:
England and Wales
Cited by:
Cited – Barings Plc and Another v Coopers and Lybrand and Others; etc ChD 23-Nov-2001
The applicant company employed a trader who, through manipulation of trading systems ran up losses sufficient to bankrupt the company. They sought recovery from the defendant auditors for failing to spot the mis-trading and prevent continuing . .
Cited – Johnson v Gore Wood and Co (A Firm) ChD 3-May-2002
The respondent firm acted on behalf of the claimant’s companies in land transactions. An option had been taken to purchase land, and he instructed the defendants to exercise it. The landowner claimed the notice to exercise the option was invalidly . .
Cited – Royal Bank of Scotland plc v Bannerman Johnstone Maclay (a Firm) and Others OHCS 23-Jul-2002
The defenders, a firm of chartered accountants, prepared accounts for a customer of the pursuer bank. The bank claimed damages for negligence having relied upon the accounts. The auditors relied upon the case of Galoo.
Held: It was not . .
Cited – Equitable Life Assurance Society v Ernst and Young (A Firm) ComC 10-Feb-2003
The company complained that its auditors had failed to give appropriate warning of the Society’s exposure to risk in awarding larger bonuses than were justified, and that had the true position been known, it xould have put itself up for sale . .
Cited – Equitable Life Assurance Society v Ernst and Young CA 25-Jul-2003
The claimant sought damages from its accountants, saying that had they been advised of the difficulties in their financial situation, they would have been able to avoid the loss of some 2.5 billion pounds, or to sell their assets at a time when . .
Cited – Loftus-Brigham and Another v London Borough of Ealing CA 28-Oct-2003
The claimants sought to recover for damages caused to their house foundations by trees growing nearby which were the responsibility of the defendants. The defendants replied that the damages was caused in part by roots from virgina creeper and . .
Cited – Six Continents Retail Ltd v Carford Catering Ltd, R Bristoll Ltd CA 5-Nov-2003
The claimant’s premises had been destroyed by fire. They sought damages from the designers for negligence. . .
Cited – Empress Car Company (Abertillery) Ltd v National Rivers Authority HL 22-Jan-1998
A diesel tank was in a yard which drained into a river. It was surrounded by a bund to contain spillage, but that protection was over ridden by an extension pipe from the tank to a drum outside the bund. Someone opened a tap on that pipe so that . .
Cited – Veitch and Another v Avery CA 12-Jul-2007
The claimants appealed the award of only nominal damages after they succeeded in their claim against their solicitors for negligence in their conduct of the defence of a mortgage possession action.
Held: The appeal failed. The judge was . .
Cited – Calvert v William Hill Credit Ltd ChD 12-Mar-2008
The claimant said that the defendant bookmakers had been negligent in allowing him to continue betting when they should have known that he was acting under an addiction. The defendant company had a policy for achieving responsible gambling, . .
Cited – Parker and Another v SJ Berwin and Co and Another QBD 17-Dec-2008
The claimants sought damages from their former solicitors. They set out to purchase a football club, expending substantial sums for the purpose, relying on the defendants’ promised provision of service in finding and arranging the funding. They said . .
Cited – IG Index Plc v Leung-Cheun and Others QBD 17-Aug-2011
The claimants sought payment from the defendants under spread bets placed by them. The defendants counterclaimed saying that they had suffered greater losses after the claimants had failed as required to close out open bets.
Held: The claim . .
Cited – Hughes, Regina v SC 31-Jul-2013
Uninsured Driver Not Guilty of Causing Death
The appellant though an uninsured driver, was driving without fault when another vehicle veered across the road. The other driver died from his injuries, and the appellant convicted of causing his death whilst uninsured. At trial he succeeded in . .
Cited – BPE Solicitors and Another v Hughes-Holland (In Substitution for Gabriel) SC 22-Mar-2017
The court was asked what damages are recoverable in a case where (i) but for the negligence of a professional adviser his client would not have embarked on some course of action, but (ii) part or all of the loss which he suffered by doing so arose . .
Lists of cited by and citing cases may be incomplete.
Negligence, Contract
Updated: 21 July 2022; Ref: scu.80741