Ratio Decidendi
A local authority owes no duty of care in negligence for the cost of repairing a defective building. Defects in the quality of a building constitute pure economic loss, which is generally not recoverable in negligence.
Fapte
Murphy purchased a house built on a concrete raft foundation approved by the local authority. The foundation was inadequate and the house developed cracks. Murphy sold the house at a loss and sued the council for negligence in approving the defective foundations.
Rezumatul hotărârii
The House of Lords unanimously overruled Anns v Merton and held that the damage was pure economic loss — the house was defective, not dangerous. A local authority owed no duty of care for this type of loss. The cost of repairing a defective building was a matter of contract and warranty, not tort.
Citate cheie
"A defect in a building is a defect in quality. The loss sustained is pure economic loss."
— Lord Bridge
Tratament ulterior
Remains the leading authority on the non-recoverability of pure economic loss for defective premises in tort. Confirmed the retreat from the expansive approach in Anns.