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D & F Estates v Church Commissioners [1989] AC 177

By Oxbridge Law TeamUpdated 04/01/2024 07:04

Judgement for the case D & F Estates v Church Commissioners

Table Of Contents

  • Plaintiffs had to pay to re-plaster a flat that they had leased upon discovering that Defendant, the owner, had had faulty plastering done, and Plaintiff sued Defendant for the cost of plastering.

  • HL held that the damage suffered by Plaintiff was purely economic loss, which was not recoverable under tort.

  • Junior Books was said to be confined to its facts because of the “unique”, albeit non-contractual, relationship of the parties. 

Lord Oliver

  • Anns is to be confined to cases where the builder’s negligence has caused danger to the health and safety of Plaintiff: NOT where it has caused pure economic loss, which is only recoverable within the Hedley-Byrne principle. 

  • He also suggested using the ‘complex structures theory’:

    • That a house is a complex structure comprising many different parts, which are each property in their own right.

    • Thus if dodgy foundations (product 1) causes damage to the walls (part 2) there has been property damage and the economic loss is consequential rather than pure. 

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