Dynamco v Holland, Hannan & Cubbits [1971] ScotCS CSIH_1 (15 July 1971)

Dynamco v Holland, Hannan & Cubbits [1971] ScotCS CSIH_1 (15 July 1971)

Under Scots law, a claim for pure economic loss resulting from negligent damage to property owned by another, where the claimant's own property is not physically damaged, is not legally admissible. Physical damage to the claimant's property is a necessary prerequisite for recovery of consequential financial loss in negligence.

Citation
[1971] ScotCS CSIH_1
Parties
Pursuer: Dynamco Ltd; Defender: Holland & Hannen & Cubitts (Scotland) Ltd; Defender: James Harrison & Co. (Builders) Ltd
Jurisdiction
Scotland
Judgment Date
15 July 1971
Procedural Posture
Reparation / Reclaiming Motion (appeal) Against Dismissal at First Instance
Outcome
dismissal of both actions; reclaiming motions refused
Legal Topics
Economic Loss, Remoteness of Damage, Duty of Care, Reparation
Tort Negligence Economic Loss Remoteness of Damage Duty of Care Reparation

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Parties

Dynamco Ltd

Pursuer

Holland & Hannen & Cubitts (Scotland) Ltd

Defender

James Harrison & Co. (Builders) Ltd

Defender

Procedural Posture

Reparation / Reclaiming Motion (appeal) Against Dismissal at First Instance

Legal Issues

  1. 1 Can a party recover damages for pure economic loss resulting from negligent damage to property owned by another, where the claimant's own property is not physically damaged?
  2. 2 Is physical damage to the claimant's property a necessary prerequisite for a claim for consequential financial loss in negligence under Scots law?

Ratio Decidendi

Under Scots law, a claim for pure economic loss resulting from negligent damage to property owned by another, where the claimant's own property is not physically damaged, is not legally admissible. Physical damage to the claimant's property is a necessary prerequisite for recovery of consequential financial loss in negligence.

Court Disposition

dismissal of both actions; reclaiming motions refused

Orders

  • Actions dismissed
  • Reclaiming motions refused