A flooring specialist nominated by the building owner owed a duty of care in negligence for pure economic loss arising from defective workmanship, despite no contract between the parties. The House of Lords extended Donoghue v Stevenson and Anns, finding sufficient proximity based on the specialist's knowledge the floor was for the pursuer's use and reliance on their skill.

This House of Lords case established that liability for negligent misstatement can exist where there is a special relationship between the parties, even without a contractual relationship. It created an exception to the general rule that there is no duty of care for pure economic loss caused by negligent statements.

Promissory estoppel can found a cause of action in Australian law where unconscionable reliance occurs

Loss of chance must be substantial to ground contractual damages claim

House of Lords revolutionizes trust law by requiring causation for breach claims

Contractual damages should put innocent party in position as if contract performed.

Section 2(1) damages assessed on fraud basis, including all consequential losses.

Hypothetical bargain damages available where traditional loss-based damages inadequate.

Court establishes landmark test for recoverable damages in contract breach

Pre-contract reliance expenditure recoverable as alternative to expectation damages when foreseeable.

Court establishes 'reasonable foreseeability' test for contractual damages

Contracting parties can recover substantial damages for third party property damage

Pre-contractual representations can create collateral warranties and negligent misrepresentation liability.

Supreme Court recasts SAAMCO and widens focus on scope of duty

Damages recoverable for loss of chance even where outcome speculative but valuable.

Promissory estoppel is a shield not a sword: cannot found cause of action.

No liability for damage to property already damaged by another tortfeasor.

Unforeseeable chemical reaction made explosion damages too remote despite negligence.

Mental distress damages require physical inconvenience and must be modest in amount.

Concurrent liability in contract and tort possible; Hedley Byrne extends to services.

Contractual damages must be within reasonable contemplation of parties at contract formation.

Equity prevents enforcement of rights where party induced reliance on representations.

House of Lords limits damages for defective building work to reasonable remedial costs

Defendants liable if type of harm foreseeable, even if manner unforeseeable

Landowners liable for natural land movements causing neighbour damage if prevention reasonable.

House of Lords sets high bar for fraudulent misrepresentation claims