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 . These cookies will be stored in your browser only with your consent. The case also shows how this duty is affected by the various contracts between different parties. It established the possibility of concurrent liability in both tort and contract. 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. Henderson v Merrett Syndicates Ltd shows the application of the assumption of responsibility test. Many losses resulting from negligence could be regarded as economic. CITATION CODES. Contents Lord Goff argued that they could choose to sue the agents either in contract or in tort. To establish a dut ATTORNEY(S) ACTS. Henderson v Merrett Syndicates 2 AC 145 The facts of Henderson were complex, but the solution favoured by the HoL was reasonably simple. No Acts. Setting a reading intention helps you organise your reading. Ps entered a syndicate whereby Ds would manage their funds. Jack Kinsella. Henderson v Merrett Syndicates Ltd [1995] 2 AC 145. 23. Henderson v Merrett [1995] 2 AC 145: Managing agents at Lloyd’s owed concurrent duties in both contract and tort to direct Names. Judgement for the case Henderson v Merrett Syndicates. [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. Case summary last updated at 19/01/2020 12:35 by the William McIlroy Swindon Ltd and Rannock Investments Ltd v Quinn Insurance Ltd [2010] EWHC 2488. Ltd. v. Hill [1981] Qd.R. Preview. It established the possibility of concurrent liability in both tort and contract . Henderson v Merrett Syndicates Ltd UKHL 5 was a landmark House of Lords case. It established the possibility of concurrent liability in both tort and contract . Henderson v Merrett Syndicates Ltd [1994] 2 AC 145 was a landmark House of Lords case. 83. See C Witting ‘Justifying Liability to Third Parties for Negligent Misstatements’ (2000) 20 OJLS 615. 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. Limitation Act section 34(5). The relationships between the "names", and member's agents were regulated by Henderson v Merrett Syndicates Ltd [1995] Facts. Here, the defendants negligently cut an electric cable, causing a power cut that lasted for 14 hours. Save my name, email, and website in this browser for the next time I comment. Copyright 2019-2020 - SimpleStudying is a trading name of SimpleStudying Ltd, a company registered in England and Wales. Contents. Required fields are marked *. 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. This website uses cookies to improve your experience while you navigate through the website. These cookies do not store any personal information. Without electricity to heat the claima… You also have the option to opt-out of these cookies. [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. Your email address will not be published. It established the possibility of concurrent liability in both tort and contract. 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. It is mandatory to procure user consent prior to running these cookies on your website. But opting out of some of these cookies may have an effect on your browsing experience. The facts of Henderson were complex, but the solution favoured by the HoL was reasonably simple. 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. 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. Unlike the law of contract (where obligations are consensual in … The tortious duty was based upon a Hedley Byrne assumption of responsibility. Facts. Spring v Guardian Assurance [1995] 2 AC 296. Henderson v Merrett Syndicates Ltd [1994] UKHL 5 was a landmark House of Lords case. This category only includes cookies that ensures basic functionalities and security features of the website. Oxbridge Notes in-house law team. 5. privacy policy. and terms. 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 item appears on. Limitation Act sections 29-31. This information is only available to paying isurv subscribers. 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. 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. Until 1964, the common law position was that there was no remedy for a negligently false statement in Negligence. (1995) 2 AC 145 at 182. In truth, the case is one in which, but for the alleged absence of the necessary Type Legal Case Document Is part of Journal Title *145 Henderson and Others Respondents v Merrett Syndicates Ltd. and Others Appellants. 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. By clicking “Accept”, you consent to the use of ALL the cookies. 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. [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. 82. 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. 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. 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. 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’. You can filter on reading intentions from the list, as well as view them within your profile.. Read the guide × A claimant is entitled to pursue the remedy which is most advantageous to them. Henderson v Merrett Syndicates [1995] 2 AC 145 Case summary last updated at 19/01/2020 12:35 by the Oxbridge Notes in-house law team. The case arose of losses suffered by investors in the Lloyds Insurance market in London during the 1980s. Dŵr Cymru v Marthenshire CC [2004] EWHC 2991. 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. 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. 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. We also use third-party cookies that help us analyze and understand how you use this website. The case arose of losses suffered by investors in the Lloyds Insurance market in London during the 1980s. 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. Oxbridge Notes uses cookies for login, tax evidence, digital piracy prevention, business intelligence, and advertising purposes, as explained in our To properly answer this question, then, it is first necessary to explore what is meant when one refers to economic loss. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. It examines the different approaches to concurrent remedies in various jurisdictions from the 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. 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. 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. Necessary cookies are absolutely essential for the website to function properly. This paper evaluates Henderson v. Merrett Syndicates Ltd, a case that is structured under contract and tort law, in the context of concurrent remedies. Case Information. Henderson v Merrett Syndicates (No 1) [1995] 2 AC 145. Registered office: Unit 6 Queens Yard, White Post Lane, London, England, E9 5EN. A v Home Secretary [2004] A v Roman Catholic Diocese of Wellington [2008, New Zealand] 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). 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. The House of Lords , also known as the House of Peers , is the upper house of the Parliament of the United Kingdom. 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. It called upon its "Names" (the shareholders) to indemnify them for its losses. Oxbridge Notes is a trading name operated by 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 That is not the case." 24. The existence of contractual relationships between the parties did not exclude the possibility of a duty of care in negligence. 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. By using our website you agree to our privacy policy 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. They could still raise an action in tort despite the existence of contractual chain. 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. Claims for negligent management of investment fund, where Henderson was a ‘name’ (an investor) and Merrett was an underwriting agent; ... [1995] 2 AC 145. Ps entered a syndicate whereby Ds would manage their funds. 85. Limitation Act section 38(2). (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. 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 Company registration No: 12373336. students are currently browsing our notes. 84. (1995) 2 AC 145. Limitation Act section 33. ©2010-2020 Oxbridge Notes. 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 A different view has however been expressed by Deane J. in Hawkins v. 573 (a decision of the Full Court of the Supreme Court of Victoria). Pty. The Names sued the shareholding company for mismanagement and negligence. Why Henderson v Merrett Syndicates Ltd is important. 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. 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