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Anns v Merton (1977)

Last modified: Thu Feb 23 16:37:37 2006

[1978] AC 728. This case probably marks the high-point of the English courts' willingness to entertain claims in negligence for PureEconomicLoss. A local authority approved building plans for a block of flats, which turned out to be defective. When the flats started to subside, the lessees sought to recover the cost of repairs from the authority, among others. In determining whether the authority had a DutyOfCare to the lessees, whom they had no prior dealings or direct contact with, Lord Wilberforce proposed a two-stage test.

First, is there a sufficient relationship of neighbourhood or proximity between the defendant and the claimant, that the defendant should reasonably contemplate that carelessness on his part would adversely affect the claimant?

If there is, then the second test is whether there are any policy considerations that prevent the a duty of care being assumed.

This two-stage test generally favours the claimant, because it suggests that once `neighbourhood' is established, there is a prima facie duty of care, which can only be rebutted on policy grounds.

It is generally believed that the Anns two-stage test has been conclusively killed off by MurphyVBrentwoodDC1990.

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