Murphy v Brentwood DC
| Murphy v Brentwood DC | |
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| Court | House of Lords |
| Decided | 26 July 1990 |
| Citation(s) |
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| Transcript(s) | House of Lords transcript |
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Murphy v Brentwood District Council [1991] 1 AC 398 was a House of Lords decision on recovery of pure economic loss in tort. It is considered to overrule the decision Anns v Merton London Borough Council.
The defendant local authority failed to inspect the foundations of a building adequately, with the result that building became dangerously unstable. The claimant, being unable to raise any money for repairs, had to sell the house at a considerable loss, which he sought to recover from Brentwood District Council. This action failed as the loss was identified as a pure economic loss.
This judgment was rejected in many other Commonwealth jurisdictions, notably Canada, Australia, Singapore, and New Zealand, all of whom preferred the two stage Anns test of proximity and policy.
Judgment
The House of Lords overruled Anns and held that the council was not liable in the absence of physical injury. Also, the case of Dutton v Bognor Regis UDC was disapproved.