To properly answer this question, then, it is first necessary to explore what is meant when one refers to economic loss. CITATION CODES. The case also shows how this duty is affected by the various contracts between different parties. Here, the defendants negligently cut an electric cable, causing a power cut that lasted for 14 hours. Ltd. v. Hill [1981] Qd.R. Until 1964, the common law position was that there was no remedy for a negligently false statement in Negligence. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 33 (a decision of the Full Court of the Supreme Court of Queensland) and Macpherson & Kelley v. Kevin J. Prunty & Associates [1983] 1 V.R. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The House of Lords , also known as the House of Peers , is the upper house of the Parliament of the United Kingdom. A claimant is entitled to pursue the remedy which is most advantageous to them. Previous Previous post: Spartan Steel and Alloys Ltd v Martin & Co [1973] QB 27 Next Next post: Henderson v Merrett Syndicates [1995] 2 AC 145 70% of Law Students drop out in the UK and only 3% gets a First Class Degree. ©2010-2020 Oxbridge Notes. The relationships between the "names", and member's agents were regulated by We also use third-party cookies that help us analyze and understand how you use this website. 82. Cases & Articles Tagged Under: Henderson & Ors v Merrett Syndicates Ltd & Ors [1995] 2 AC 145 | Page 1 of 1 Khouj v Acropolis Capital Partners Limited & anr [2016] EWHC 2120 (Comm) WTLR Issue: January/February 2017 #166 The tortious duty was based upon a Hedley Byrne assumption of responsibility. Henderson v Merrett Syndicates (No 1) [1995] 2 AC 145. 23. Necessary cookies are absolutely essential for the website to function properly. This item appears on. Pty. In truth, the case is one in which, but for the alleged absence of the necessary But opting out of some of these cookies may have an effect on your browsing experience. and terms. Oxbridge Notes is a trading name operated by ATTORNEY(S) ACTS. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. (Henderson v Merrett Syndicates Ltd [1995] 2 AC 145 (HL), per Lord Goff of Chieveley, 193) 138 THE LAW OF TORTS GOVERNS CIVIL RIGHTS AND DUTIES owed among various members of society. No Acts. Ps entered a syndicate whereby Ds would manage their funds. 85. Henderson v Merrett Syndicates Ltd [1994] UKHL 5 was a landmark House of Lords case. Contents. Lord Goff argued that they could choose to sue the agents either in contract or in tort. That is not the case." 573 (a decision of the Full Court of the Supreme Court of Victoria). By using our website you agree to our privacy policy In this case, there was a duty of care not to cause pure economic loss to both groups of claimants for the following reasons: Your email address will not be published. Some contracted directly with fund managers, while others had a contract to join the syndicate and their relationship with a fund manager was through the medium of a sub-agency agreement. A claimant's pure economic loss resulting from a defendant's carelessness can only give rise to a claim in Negligence if a duty of careis established. Oxbridge Notes uses cookies for login, tax evidence, digital piracy prevention, business intelligence, and advertising purposes, as explained in our Henderson v Merrett Syndicates Ltd [1995] 2 AC 145; This case concerned the near collapse of Lloyd's of London when hurricanes in United States devastated its property holdings. Case summary last updated at 19/01/2020 12:35 by the This website uses cookies to improve your experience while you navigate through the website. 84. It is mandatory to procure user consent prior to running these cookies on your website. (1995) 2 AC 145 at 182. Relying on his own judgment in Spring v Guardian Assurance, Lord Goff again emphasized the concept of voluntary assumption of responsibility drawn from Hedley Byrne. The facts of Henderson were complex, but the solution favoured by the HoL was reasonably simple. [1995] 2 AC 145, [1994] UKHL 5, [1994] 3 All ER 506, [1994] UKHL 5: Court membership; ... Henderson v Merrett Syndicates Ltd [1994] UKHL 5 was a landmark House of Lords case. Henderson v Merrett Syndicates Ltd [1994] 2 AC 145 was a landmark House of Lords case. Copyright 2019-2020 - SimpleStudying is a trading name of SimpleStudying Ltd, a company registered in England and Wales. In respect of the question of ‘concurrency’ (liability in both contract and tort on the same facts) Lord Goff examined the case of Hedley Byrne and considered whether the principle of ‘voluntary assumption of responsibility should apply only in the absence of a contract. This preview shows page 24 - 27 out of 35 pages.. Henderson v. Merrett Syndicates Ltd. [1995] 2 AC 145]; The “ Hedley Byrne ” situation: The defendant has a special skill and uses it to give advice to the plaintiff, while Ltd. [1995] 2 AC 145]; The “ Hedley Byrne ” situation: The defendant has a special skill and uses it to give advice to the plaintiff Henderson v Merrett Syndicates Ltd [1995] Facts. Henderson v Merrett Syndicates Ltd [1995] 2 AC 145. students are currently browsing our notes. Case Information. privacy policy. Limitation Act section 33. This paper evaluates Henderson v. Merrett Syndicates Ltd, a case that is structured under contract and tort law, in the context of concurrent remedies. Without electricity to heat the claima… Setting a reading intention helps you organise your reading. William McIlroy Swindon Ltd and Rannock Investments Ltd v Quinn Insurance Ltd [2010] EWHC 2488. However he asserts that “the principle extends beyond the provision of information and advice to include the performance of other services.” He acknowledges the criticism of the “assumption of responsibility” test in misrepresentation cases but says “in cases such as this” and “especially in a context concerned with a liability which may arise under a contract or in a situation ‘equivalent to contract,’” the benefit of asking whether, objectively, “responsibility should be held to have been assumed by the defendant” is that where one party assumes responsibility towards another he ought to be liable for loss flowing from it and hence, once it is established that a case falls within the Hedley Byrne principles (including assumption of responsibility), there is no need to ask whether it is fair, just and reasonable for liability to be imposed.Â, Written by Oxford & Cambridge prize-winning graduates, Includes copious adademic commentary in summary form, Concise structure relating cases and statutes into an easy-to-remember whole. These cookies will be stored in your browser only with your consent. Henderson v Merrett Syndicates Ltd UKHL 5 was a landmark House of Lords case. You also have the option to opt-out of these cookies. recent case of Henderson v Merrett Syndicate Ltd12, Lord Goff, in looking for the principle which underlay the decision in Hedley Byrne, referred to passages in the speeches of Lord Morris and Lord ... [1995] 2 AC 145, [1994] 3 All ER 506. Save my name, email, and website in this browser for the next time I comment. Knowledge of reliance + special skill + relationship between D and P that is either general or specific to a particular transaction (whereby D assumes a responsibility to P) = prima facie duty of care (subject to disclaimers). Registered office: Unit 6 Queens Yard, White Post Lane, London, England, E9 5EN. This category only includes cookies that ensures basic functionalities and security features of the website. Oxbridge Notes in-house law team. HL held that the more “indirect” plaintiff could still claim for tort damages as the relationship was proximate enough.Â, Lord Goff: This type of relationship (investor and managing agent) is a typical circumstance where the Hedley-Byrne rules apply. The practical result of this was that a C who had available remedies both in contract and tort could ‘choose that remedy which appears to him to be the most advantageous’. Henderson v Merrett Syndicates 2 AC 145 The facts of Henderson were complex, but the solution favoured by the HoL was reasonably simple. Spring v Guardian Assurance [1995] 2 AC 296. Jack Kinsella. Unlike the law of contract (where obligations are consensual in … Limitation Act sections 29-31. Ps entered a syndicate whereby Ds would manage their funds. The Names sued the shareholding company for mismanagement and negligence. 83. They could still raise an action in tort despite the existence of contractual chain. Required fields are marked *. Pure economic loss may arise in cases where there is no physical damage but loss has been caused by a negligent statement, rather than a negligent action. In addition as Lord Browne-Wilkinson pointed out in Henderson v Merrett Syndicates Ltd [1995] 2 AC 145, 206: "The phrase "fiduciary duties" is a dangerous one, giving rise to a mistaken assumption that all fiduciaries owe the same duties in all circumstances. It examines the different approaches to concurrent remedies in various jurisdictions from the Henderson v Merrett Syndicates Ltd 2 AC 145, 181, the existence of that relationship and the foreseeability of economic loss will make it unnecessary to undertake any further inquiry into whether it would be fair, just and reasonable to impose liability. A v Home Secretary [2004] A v Roman Catholic Diocese of Wellington [2008, New Zealand] The agents held themselves out as having a special skill, they knew that Ps would be implicitly relying on their advice, since Ps gave Ds the authority to take out insurance etc for them. Henderson v Merrett Syndicates Ltd shows the application of the assumption of responsibility test. Many losses resulting from negligence could be regarded as economic. Henderson v. Merrett Syndicates Ltd. (HL(E)) 1995 2AC 145 Facts: The plaintiffs were Lloyd's "names" who were members of syndicates managed by the defendant underwriting agents. Anns v Merton London Borough Council [1978] AC 728 (case summary) Murphy v Brentwood District Council [1991] 1 AC 398 Caparo Industries Plc v Dickman [1990] 2 AC 605 (case summary) Gorham v British Telecommunications Plc [2000] EWCA Civ 234 Henderson v Merrett Syndicates [1995] 2 AC 145 Junior Books Ltd v Veitchi [1982] 3 WLR 477 Claims for negligent management of investment fund, where Henderson was a ‘name’ (an investor) and Merrett was an underwriting agent; ... [1995] 2 AC 145. Facts. A different view has however been expressed by Deane J. in Hawkins v. Limitation Act section 34(5). (1995) 2 AC 145. It established the possibility of concurrent liability in both tort and contract. Why Henderson v Merrett Syndicates Ltd is important. To establish a dut Henderson v Merrett Syndicates Ltd (1995) 2 AC 145 at 180 per Lord Goff; Williams v Natural Life Health Foods Ltd (1998) 1 WLR 829 at 834 per Lord Steyn. [1995] 2 AC 145, [1994] 3 All ER 506, Times 26-Jul-1994, [1994] UKHL 5, [1994] 3 WLR 761 Bailii England and Wales Citing: Cited – Hedley Byrne and Co Ltd v Heller and Partners Ltd HL 28-May-1963 Banker’s Liability for Negligent Reference The appellants were advertising agents. [1995] 2 AC 145 Contract administration Unlike contractors, professional consultants (such as engineers and architects) owe their contractual clients a concurrent and coextensive duty of care in tort in relation to the provision of their services. Dŵr Cymru v Marthenshire CC [2004] EWHC 2991. Henderson v Merrett [1995] 2 AC 145: Managing agents at Lloyd’s owed concurrent duties in both contract and tort to direct Names. Henderson v Merrett Syndicates (BAILII: [1994] UKHL 5) [1995] 2 AC 145, [1994] 3 All ER 506 Herd v Weardale Steel Coal & Coke Co Ltd (BAILII: [1914] UKHL 2 ) [1915] AC 67 Hicks v Chief Constable of the South Yorkshire Police (BAILII: [1991] UKHL 9 ) [1992] 2 All ER 65, [1992] PIQR P433 This information is only available to paying isurv subscribers. It established the possibility of concurrent liability in both tort and contract. It established the possibility of concurrent liability in both tort and contract . Henderson v Merrett Syndicates United Kingdom House of Lords (25 Jul, 1994) 25 Jul, 1994; Subsequent References; Similar Judgments; Henderson v Merrett Syndicates [1994] 3 All ER 506 [1995] 2 AC 145 [1994] UKHL 5. See C Witting ‘Justifying Liability to Third Parties for Negligent Misstatements’ (2000) 20 OJLS 615. These cookies do not store any personal information. Like Oliver J in the earlier case of Midland Bank Trust v Hett, Lord Goff considered that the Hedley Byrne principle of ‘voluntary assumption of responsibility’ could give rise to a claim in tort in contractual situations. He also says one can proceed either by analogy of circumstances to previous cases that come within the Hedley Byrne rules OR by principle from that case. 24. 5. Type Legal Case Document Is part of Journal Title *145 Henderson and Others Respondents v Merrett Syndicates Ltd. and Others Appellants. A case which usefully illustrates the difference between damage, economic loss arising from personal injury and/or damage to property and pure economic loss is Spartan Steele v Martin . Preview. Judgement for the case Henderson v Merrett Syndicates. By clicking “Accept”, you consent to the use of ALL the cookies. You can filter on reading intentions from the list, as well as view them within your profile.. Read the guide × The case arose of losses suffered by investors in the Lloyds Insurance market in London during the 1980s. Endnotes [1] This recommendation makes it unnecessary for present purposes to debate whether Henderson v Merrett Syndicates Ltd [1995] 2 AC 145 was rightly decided, or whether the Australian criticisms of Day v Mead [1987] 2 NZLR 443 are warranted (see Meagher et al, para 2304), or to discuss the bold first instance assertion in Dairy Containers Ltd v NZI Bank Ltd [1995] 2 NZLR 30, 76. Your email address will not be published. Limitation Act section 38(2). C sued underwriting and managing agents for negligent conduct of their affairs, on the basis that it exposed them to unreasonable risk of financial loss. Contents The existence of contractual relationships between the parties did not exclude the possibility of a duty of care in negligence. It established the possibility of concurrent liability in both tort and contract . The case arose of losses suffered by investors in the Lloyds Insurance market in London during the 1980s. It called upon its "Names" (the shareholders) to indemnify them for its losses. He noted that Hedley Byrne was founded on earlier case law in which there was concurrent liability in contract and in tort which was not solely for negligent statements but extended to professional services more generally. Company registration No: 12373336. Henderson v Merrett Syndicates 2 AC 145 Why Henderson v Merrett Syndicates Ltd is important Henderson v Merrett Syndicates Ltd establishes that there may be concurrent liability in contract and the tort of negligence. V Merrett Syndicates Ltd shows the application of the Full Court of the website ”. Byrne assumption of responsibility test that there was no remedy for a negligently false in. For mismanagement and negligence by investors in the Lloyds Insurance market in London during the 1980s Rannock Ltd... 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