Defendant, a brokerage firm, negligently failed to take action on instructions given to them by Plaintiff, a firm of insurers, following which Plaintiff suffered loss (they failed to obtain a valid contract of reinsurance from Plaintiff’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 Plaintiff’s own insurer to pay out).
However Plaintiff had had plenty of time to resolve the failure but failed to do so.
CA held that here Plaintiff’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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Tort Law | Defences In Tort Notes (4 pages) |