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Vesta v Butcher

[1988] 2 All ER 43

Case summary last updated at 04/01/2020 13:57 by the Oxbridge Notes in-house law team.

Judgement for the case Vesta v Butcher

 D, a brokerage firm, negligently failed to take action on instructions given to them by P, a firm of insurers, following which P suffered loss (they failed to obtain a valid contract of reinsurance from P’s own insurer OR to ascertain that the insured party was capable of keeping a 24hr watch on the insured property, which was a requirement for P’s own insurer to pay out). However P had had plenty of time to resolve the failure but failed to do so. CA held that here P’s claim for damages was to be reduced by reason of contributory negligence by the proportion of the loss for which he was responsible. It was held that the Law Reform (Contributory Negligence) Act 1945 only applies to claims for breach of contract where contractual duties coexist with tortious duties of care. They do not apply to purely contractual duties. 

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