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