Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd

E590300

Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd is a leading English Court of Appeal case on negligence and pure economic loss, noted for Lord Denning’s influential judgment limiting recovery for relational economic loss.

All labels observed (1)

How this entity was disambiguated

Statements (47)

Predicate Object
instanceOf Court of Appeal of England and Wales decision ⓘ
English court case ⓘ
areaOfLaw economic loss ⓘ
negligence ⓘ
tort law ⓘ
categoryOfLossNotRecoverable pure economic loss unconnected to physical damage ⓘ
relational economic loss from interruption of a power supply ⓘ
categoryOfLossRecoverable consequential economic loss linked to physical damage ⓘ
physical damage to property ⓘ
citation [1972] 3 All ER 557 ⓘ
[1972] 3 WLR 502 ⓘ
[1973] QB 27 ⓘ
country England and Wales ⓘ
court Court of Appeal of England and Wales ⓘ
decisionOnDamages damages awarded for physical damage to the melt and profit on that melt ⓘ
damages refused for loss of profits on melts that would have been processed during the period of power failure ⓘ
factSummary claimant also claimed for loss of profits on further melts that could not be processed during the outage ⓘ
defendant contractors negligently damaged an electricity cable supplying power to claimant’s steel factory ⓘ
power cut caused damage to a melt in claimant’s furnace and loss of profit on that melt ⓘ
holding claimant could recover for physical damage to property and consequential loss but not for pure economic loss from lost future profits ⓘ
judge Edmund Davies LJ ⓘ
Lawton LJ ⓘ
Lord Denning MR ⓘ
linked to: Lord Denning
jurisdiction England and Wales ⓘ
languageOfDecision English ⓘ
lawReportSeries Queen’s Bench Reports ⓘ
leadingJudge Lord Denning MR ⓘ
linked to: Lord Denning
legalIssue duty of care for economic loss caused by damage to property of a third party ⓘ
recovery for pure economic loss in negligence ⓘ
legalPrinciple distinction between consequential economic loss and pure economic loss ⓘ
limitation on recovery for relational economic loss ⓘ
policy-based restriction on indeterminate liability for economic loss ⓘ
pure economic loss is generally not recoverable in negligence absent special circumstances ⓘ
LordDenningView imposing liability for all economic loss from power cuts would expose defendants to liability in an indeterminate amount for an indeterminate time to an indeterminate class ⓘ
opinionBy Lord Denning MR ⓘ
linked to: Lord Denning
parties Martin & Co (Contractors) Ltd ⓘ
Spartan Steel & Alloys Ltd ⓘ
proceduralPosture appeal to the Court of Appeal ⓘ
relatedConcept consequential loss ⓘ
duty of care in negligence ⓘ
pure economic loss ⓘ
relational economic loss ⓘ
significance frequently cited in subsequent cases on economic loss and duty of care ⓘ
illustrates policy-based reasoning in tort law ⓘ
leading authority on limits of recovery for pure economic loss in English negligence law ⓘ
subjectMatter damage caused by negligent interference with electricity supply to a factory ⓘ
yearDecided 1972 ⓘ

How these facts were elicited

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Lord Denning → notableWork → Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd ⓘ
Alfred Thompson Denning → notableCase → Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd ⓘ