Court Of Appeal Considers Principle Of Remoteness

Concurrent LiabilityUnless a contract states otherwise, an engineer performing duties under contract is still held to the identical common of care anticipated of an engineer in tort. In scenarios of concurrent liability in tort and contract, on the other hand, it would seem anomalous to award a distinct level of damages for what is essentially the identical incorrect on the sole basis of the kind of action selected, though, of course, certain situations or policy may well dictate such a course. The significant overlap amongst the causes of actopm seems to erode away the regular distinctions among tort and contract when reasonable care” duties are concerned. Whereas, in tort the date of accrual is the date of damage, or the date when the claimant suffered harm for relying on the details provided.

The crucial importance of this further criterion can clearly be observed when one particular considers that even if the specific identity or class of potential plaintiffs is known to a defendant, use of the defendant’s statement for a objective or transaction other than that for which it was prepared could nonetheless lead to indeterminate liability. The second relationship is a single in which the contract stipulates a decrease duty than that which would be imposed by the law of tort.

Plainly stated, adding further specifications to the duty of care test delivers a implies by which policy issues that are extrinsic to uncomplicated justice – but that are, nevertheless, fundamentally essential – may well be taken into account in assessing no matter whether the defendant should be compelled to compensate the plaintiff for losses suffered.

V. British Columbia Hydro and Energy Authority, 1993 CanLII 145 (SCC), 1993 1 S.C.R. 12 and Cognos, that breach of pre-contractual representations may possibly be actionable as each a breach of contract and negligent misrepresentation, with clear exceptions arising from the express terms of the contract. This conclusion obtaining been reached, a single would count on that the quantum of damages in tort and contract would be similar simply because the components of the bargain unrelated to the misrepresentation are reintroduced.

The crucial difficulties are (1) will a offered pre-contractual misrepresentation assistance a claim in contract and tort concurrently and (two) what consequences outcome from concurrent liability. In Holt LJ mentioned that: ‘…if the exact same parties enter a contractual relationship involving a lot more restricted obligations than those imposed by the duty of care in tort. On the details of Glanzer, supra, then, the scope of the defendant’s liability could readily be delimited and indeterminacy, as a result, was not a concern.