Chapter 11 The Tort of Negligence - OED-update - Oxford University ...

Special cases of pure economic loss
Chapter 11 The Tort of Negligence 351
Decision: The claimant was not entitled to compensation, in the Law of Torts, from the builders
for the cost of remedial work, as this was pure economic loss.
There are some exceptions where the courts have stated that a duty of care is owed to a
claimant even though that claimant has only incurred pure economic loss. These exceptions
fall in circumstances where the courts have decided there is a particularly close
proximity between the claimant and the defendant. The claimant is someone that the
defendant would contemplate as being closely and directly affected by his actions. An
example of an exceptionally close relationship is that of a solicitor and a beneficiary under
a will. If the solicitor is negligent in preparing the will to such an extent that the intended
beneficiary is unable to inherit, then that beneficiary may be successful in his claim even
though he has only suffered pure economic loss.
Ross v Caunters (1980)
Facts: Solicitors sent a testator his will to sign but failed to inform him that the will should not
be witnessed by the spouse of an intended beneficiary. The will was returned signed and witnessed.
The solicitors did not notice that the will had been witnessed by a beneficiary’s spouse.
When the testator died, the intended beneficiary was unable to claim under the will and sued
the solicitors.
Decision: The claimant was a named beneficiary and a foreseeable victim. A duty of care was
owed to the claimant by the defendant solicitors.
In the following case, the House of Lords decided there was a duty of care owed by solicitors
to a potential beneficiary because the solicitors had assumed responsibility and there
was a relationship of trust.
White v Jones (1995)
Facts: A father made a will disinheriting his two daughters after a family quarrel. He later
became reconciled with them and asked his solicitors to prepare a new will. The solicitors
negligently delayed making the will and the father died before the new will was completed.
The daughters lost £9000 each which they would have got under the new will.