Controlling Liability To Passive Sufferers Of Negligent Misstatements

Abstract

Passive sufferer cases in the area of negligent misstatement are anomalous and, as Lord Oliver commented in Caparo, "do not readily fit into easily definable categories".  This latter statement was a reference to the fact that the existing categories of duty situations had developed from situations where the plaintiff either as intended or unintended recipient, had ultimately used and relied on the negligent advice or information and thereby suffered damage. However, the passive sufferer of a negligent statement has not used or relied on that statement. The reliance has been by a third party with resultant damage to the passive sufferer.