Anns v Merton London Borough Council [1978] AC 728
Citation:Anns v Merton London Borough Council [1978] AC 728
Rule of thumb:If there are obvious mistakes made in the construction process, is the surveyor who oversees these liable? Yes, a surveyor is liable for obvious mistakes in the construction process.
Background facts:
The basic facts of this case were that a house was built with foundations which were not built to planning and to basic building standards. It meant that the house was grossly overpriced and a lot of money was lost on it.
Judgment:
The Council had been heavily involved in overseeing the building process and was negligent in not noticing the breaches by the builder. It was held that with this pure economic loss that the Council could be held liable for this. Where a surveyor oversees a build process and affirms it as being acceptable then it can be liable if there were latent defects which they should have picked up.
Ratio-decidendi:
‘in order to establish that a duty of care arises in a particular situation, it is not necessary to bring the facts of that situation within those of previous situations in which a duty of care has been held to exist. Rather the question has to be approached in two stages. First one has to ask whether, as between the alleged wrongdoer and the person who has suffered damage there is a sufficient relationship of proximity or neighbourhood such that, in the reasonable contemplation of the former, carelessness on his part may be likely to cause damage to the latter—in which case a prima facie duty of care arises. Secondly, if the first question is answered affirmatively, it is necessary to consider whether there are any considerations which ought to negative, or to reduce or limit the scope of the duty or the class of person to whom it is owed or the damages to which a breach of it may give rise’, Lord Wilberforce.
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.