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PRACTICE NOTES
Practice Notes: • Negligence—when does a duty of care arise? • Negligence—establishing a duty of care—specific scenarios will assist you to identify when a duty of care has arisen. Having established this, it is then necessary to consider whether or not there has been a breach of that duty. This will depend on a number of factors outlined below and considered against the general background of reasonableness considered objectively. Breach of duty of care—reasonableness In order to determine whether a duty of care has been broken, the law adopts the artificial objective standard of the ‘reasonable person’, which involves ignoring the realities of the defendant's situation insofar as their capacities differ from that standard (Glasgow Corpn v Muir, per Lord Macmillan). Breach of duty of care—objectivity The objective requirement of a reasonable level of competence applies to skills which can only be acquired by training and effort, as well as to basic attributes, which most people can be expected to
NEWS
Dispute Resolution analysis: The Court of Appeal has ruled that when a professional provides advice on two separate occasions about the same or similar issues, a cause of action in negligence can accrue both times. Even where a claim in relation to the earlier advice would be time-barred, a claim in relation to the further advice provided on a later occasion may still succeed. While the Court of Appeal did not make any finding of negligence, it rejected the contention that it was bound by authority or by the facts of this particular case to consider the claim time-barred. In particular, the court overruled the first instance finding that the second advice was part of a continuous pattern of advice which had been given, and acted upon, more than six years prior to the claim being issued and therefore statute-barred. Written by Harriet Campbell, professional support lawyer at Stephenson Harwood LLP.
GLOSSARY
A negligent misstatement is a misstatement that is made honestly, but carelessly by party A to party B, where A owes B a duty of care. An action can be brought in tort for negligent misstatement.
PRACTICE NOTES
There are a number of ways in which liability for negligent misstatement may be avoided and/or limited. For details on founding a claim of negligent misstatement, see Practice Note: Negligent misstatement—founding a claim. For guidance generally on clauses seeking to limit or exclude liability, see Practice Notes: • Misrepresentations—excluding and limiting liability for them • Contractual estoppel • Contractual estoppel—illustrative cases Disclaimers of liability for negligent misstatement Liability for negligent misstatement can be disclaimed if the statement is accompanied by a form of words which makes the intention to disclaim clear. In Hedley Byrne v Heller the defendants stated that their advice was given 'without responsibility' and this was held to be effective to negate liability for negligence which would otherwise have arisen. It is important that the words chosen are express and unambiguous: the court will not be prepared to identify a disclaimer as a matter of inference (Box v Midland Bank [1981] 1 Lloyd’s Rep 434, not reported by LexisNexis®). Third parties The
PRACTICE NOTES
Similar but different to a claim for actionable misrepresentation are claims for negligent misstatement. This Practice Note sets out when and how such claims may by brought, by whom and the key essential ingredients of such claims. For details on remedies for negligent misstatement, see Practice Note: Negligent misstatement—defences and remedies. For guidance on bringing a claim for misrepresentation and the distinction between misrepresentation and negligent misstatement claims, see Practice Note: Misrepresentation—what it is and similar claims and related content. What is a claim for negligent misstatement? What is a negligent misstatement? The most obvious type of case is a careless response to a request for a specific piece of information. It also includes careless advice and evaluation in situations requiring special skill, and professional activities such as the auditing of a company. As well as the making of positive statements, liability for negligent misstatement may be imposed for an omission to make a statement when a duty to make one existed. Who can claim? The
GLOSSARY
A negligent tort is a civil wrong arising from a failure to exercise the standard of care that the law requires, causing foreseeable harm to another person or their property. In practice, it covers claims such as road traffic accidents, employer’s liability, professional negligence and occupiers’ liability.Across England and Wales, Scotland, Northern Ireland and Ireland, negligence is primarily a creature of case law rather than statute, though legislation (for example on limitation, contributory negligence and specific duties) modifies its operation. The claimant (or pursuer in Scotland) must usually prove: (1) the defendant owed a duty of care; (2) breach of that duty; (3) causation in fact and law (including remoteness/foreseeability); and (4) recoverable damage.Terminology and procedural rules differ slightly between jurisdictions, but the core elements of negligent tort/delict are broadly consistent. In Scotland it is characterised as the delict of negligence rather than a “tort”, but the same concepts of duty, breach and loss apply.Negligent torts are central to personal injury, clinical negligence, professional indemnity and public authority liability, forming the backbone of insurance-funded civil litigation and risk management.
NEWS
Banking & Finance analysis: When a loan is made on the basis of a negligent valuation of the security, but it is mostly used to refinance the lender’s previous loan to the same borrower, can the lender recover all of its loss on the second loan from the valuer? Joanna Smith QC, of Wilberforce Chambers, examines the Supreme Court’s approach to this question in Tiuta v De Villiers.
GLOSSARY
A negotiable instrument is a written document which includes the legal characteristics of negotiability.
GLOSSARY
The competitive procedure with negotiation (negotiated procedure) is a method of procurement'>public procurement under which the contracting authority is able to negotiate with pre-qualified bidders by applying the evaluation criteria to the interim and final bid. The authority is also able to negotiate the bid and terms of contract with the successful bidder.
PRACTICE NOTES
This Practice Note is a negotiation guide, looking at some of the most common issues that arise in relation to design in the drafting and negotiation of building contracts. It looks at provisions that are commonly proposed during the negotiation of a building contract, at the issues that provisions that the employer includes in the draft building contract can cause for the contractor and how the contractor will typically respond to them. It also considers how, in order to be able to agree the building contract, the parties might be able to resolve these design-related issues and, where possible, reach a compromise position that is acceptable to them both. This Practice Note does not focus on a particular form of building contract, the draft contract in which these issues could arise might be a standard form with schedule of amendments or a bespoke form of contract. For ease of reference, this Practice Note uses the expressions ‘Employer’s Requirements’ (ERs) to refer to the document(s) produced by the employer to set out its requirements in relation
PRACTICE NOTES
The payment provisions in a building contract will usually provide for the contractor to make applications (although applications are not always mandatory) either at monthly intervals or the end of certain stages (eg where the works reach specified milestones), and may set out requirements as to what any applications must contain and will provide for conclusion of the final account. The contract should also set out the timings for various notices to be served in accordance with the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996). The contract is also likely to contain provisions relating to loss and expense payments, interest on late payments and the withholding of retention, and may contain other payment-related provisions. Many of these payment provisions will not be contentious and will reflect terms commonly seen in the market. There are, however, several issues relating to payment which are often the subject of negotiation between the parties. This Practice Note is a negotiation guide, looking at the most common issues that typically arise in relation to payment when drafting and negotiating
CHECKLISTS
For further practical guidance on solar projects, including insights from a number of jurisdictions, see also textbook: Solar Power: A Practical Handbook. Negotiating a rooftop lease for solar PV panels When negotiating a rooftop lease for solar PV panels, the issues will vary depending upon the interests of the party being represented. The term 'landlord' is used to identify the party which owns the freehold or a long lease of the building in question; the 'occupier' refers to the entity which occupies the building; and ‘solar tenant’ denotes the party which intends to install and own the panels. The solar tenant may be also be the occupier of the building, or might be a specialist solar developer. Increasingly, landlords are also installing solar panels on their buildings—either through the same legal entity as owns the building, or through an affiliated solar company. This note concerns rooftop leases, so envisages a scenario in which the solar tenant is a different legal entity to the landlord. If