Business law Essay Example | Topics and Well Written Essays - 2500 words

Business law - Essay Example However, the Council may not be held liable for the losses of 50,000 pounds that Burton is trying to claim in the form of lost profits. The original neighbor principle mandating a general duty of care towards others on the basis of owing consideration to one’s neighbor, was set out in the case of Donaghue v Stevenson.1 This was later refined in the case of Caparo v Dickman2 where the scope of the duty of care was refined on the basis of three principles: (a) was there a relationship of sufficient proximity between the plaintiff and the defendant? (b) Was the damage caused to the plaintiff reasonably foreseeable? (c) Is it just and reasonable to impose a duty of care? This may be applied in the case of both Abi and Burton, who have suffered damages in the form of repairs needed for their homes, with Abi also sustaining injuries. Abi is a local resident of the area and Burton’s is a local business, therefore the Council is responsible for ensuring their safety by maintaining the flood barrier. Secondly, the damage caused is likely to be held to be reasonably foreseeable because Hanby Borough Council is responsible for maintaining flood defenses along the river and were told to improve the defenses. Since a flood had occurred before, it is reasonable to assume that such damages occurring in the future would have been a foreseeable event and therefore the Council may be held to be negligent in failing to complete repairs quickly. Lastly, the Court may indeed deem it just and reasonable to impose a duty of care in this case, since the negligence of the Council has resulted in damages caused to the premises of both Abi and Burton, as well as fu rther injuries to Abi while she was being rescued which required hospitalization. The underlying core for the establishment of the principles wherein negligence has been held to be legally liable under the principles spelt out in the cases above, is the sentiment of moral wrong doing for which the offender is to be held