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CONSTRUCTION PROJECTS
SARAH FOX
500 Words Ltd
Tort in Construction
The law of tort is concerned with conduct which cases harm to a partys
1
personal, proprietary or financial interests. It is the law of wrongdoing.
Torts allocate responsibility and provide remedies (often compensation) for careless conduct
with causes harm. Defining torts can be difficult due to their sheer breadth. Moran says
torts are legally wrongful acts or omissions [which] interfere with some legal right of the
complaining party.2 Uff says Tort can be defined as a civil wrong independent of contract;
or as a breach of a legal duty owed to persons generally.3
Overview
Liability in tort does not (generally) exist without proof of legally recoverable losses. There is
a hierarchy of loss in tort, which does not exist in contract law:
Only defects causing type 1 loss are always recoverable when considering losses arising on
construction projects and from defective buildings. Other defects may be covered by your
contract but not by the law of torts.
Negligence Negligence is the most important tort for several reasons: it forms the
cause of action in the majority of cases brought in tort; its scope is very
wide; and it may also be an element in liability for other torts.5
Duties can arise from both statute (e.g. Highways Acts, Occupiers Liability
Acts, Defective Premises Act) and the common law (classically in Donoghue
v Stevenson 193211). The duty of care also extends to goods or materials
produced or placed into circulation which are of a dangerous nature.
Under the DPA occupiers can bring an action against anyone involved in the
design or construction of a dwelling, whether consultants, suppliers or
(sub)contractors. This duty cannot be excluded or contracted out of.
Establishing a lack of care either in the manner of doing works or the
selection/use of materials comes under the DPA and negligence.
The major limitations of the Act are that (1) it only applies to residential
premises and not commercial properties; and (2) the limitation period is 6
years after the work was completed.
Nuisance Nuisance is the unlawful interference with a persons use or enjoyment of
land or some rights over or in connection with the land (or a neighbours
land). There is some overlap between negligence and nuisance.
Examples of acts which can be a nuisance include noise, smell, dust, damp,
vibration, smoke, damage to foundations by tree roots, dumping of rubbish
or other waste etc. but not interference with TV reception.12 Nuisance also
covers interference of a temporary nature such as that from a construction
site provided it is unusual, excessive or unreasonable. Damage is an
essential element in this action. Defences include consent, prescription (20
years use) and statutory authority (but excluding planning permission).
Public nuisance is a criminal offence and generally only the state can
pursue the offender. It is an act or omission which materially affects the
reasonable comfort and convenience of life of a class of Her Majestys
subjects.13 It is any act which inflicts damage, annoyance or inconvenience
on a class of persons or people generally.
Examples of trespass include passing over the land16 or fixing items to the
land. Although airplanes do not trespass into the space above land, cranes
do and landowners can restrain their use with an injunction in certain
cases.17
A person who for his own purposes brings on his land and collects and
keeps there anything likely to do mischief it is escapes must keep it at his
peril, and if he does not do so, is prima facie answerable for all the damage
which is the natural consequence of its escape.18
The rule creates a duty on the occupier of a land to take care that things
placed on her land do not escape and cause damage. The required elements
are:
a dangerous19 escape which causes damage
the thing must have been brought onto the land
the thing must be a non-natural user20 of the land.
Negligent A person who gives advice or information knowing that the recipient of the
Misstatement information will rely or is very likely to rely on the makers skill or ability,
owes the recipient a duty of care. 22 This is a form of negligence liability.
The essence of this tort is that the adviser has assumed responsibility. This
assumption of responsibility has been held to extend beyond consultants 23
to specialists24 and D&B contractors;25 but not necessarily to engineers.26
Occupiers Although there are also statutory duties27, there is a tortious duty on
Liability occupiers to ensure their property is safe for visitors.
It only applies to negligent activities carried out on the premises and not
the state of the premises themselves: in Drysdale v Hedges [2012]28 the
court held that where a landlord was not liable under the relevant Acts, it
owed a duty to take reasonable care not to create an unnecessary risk of
injury.
There are three non-delegable duties for employers.30 These are to use
reasonable care to provide: competent staff, adequate materials and a
proper system of effective supervision. To bring a claim, an individual has to
establish the damage was caused by a breach of these duties. Claims can be
reduced when the individual was also negligent (contributory negligence).
Fraud/Deceit The essence of fraud is that the person making a statement has no belief in
its truth. It involves dishonesty, irrespective of motive or intention. Where
there is a fraudulent misrepresentation then the injured party is entitled to
claim under the tort of deceit.
Withdrawal A landowner must not interfere with the natural rights enjoyed by his
of Natural neighbours e.g. a right of support for land (although not for buildings).
Rights
(i) the individual comes within the class or category of persons which
the Act is intended to protect;
(ii) the loss or damage suffered is of a type intended to be prevented
under the statute;
(iii) the Act does not preclude civil liability for breach of its provisions;
(iv) breach of the relevant statutory duty; and
(v) on the balance of probabilities the injury, loss or damage was
caused by the breach of statutory duty.
Examples include the Defective Premises Act and Occupiers Liability Acts
(as above) and also s71 of the Health and Safety at Work Act 1974, which
provides civil liability for breach of a statutory duty imposed under the
Building Regulations, once enacted.
When considering claims in negligence and breach of statutory duty, the Compensation Act
2006 needs to be taken into account. This Act provides, at s1, that:
The Author
Sarah Fox (500 Words Ltd) developed this Guide. She has trained many construction
professionals on why tort matters especially as it underlies on the reasons behind the
widespread use of collateral warranties and third party rights. She is a speaker and trainer
who helps construction specialists write simpler contracts and understand complex ones.
She is also author of the 500-Word Contract.
To find out how Sarah can help your contracts meet your preferred risk strategy call her
mobile: 07767 342747 or email: sarah@500words.co.uk
Further Resources
1
Architects Legal Handbook, p21 paragraph 1.01
2
Architects Legal Handbook, p21, paragraph 1.02.
3
Construction Law , p461.
4
Defamation is not included as it is less relevant in construction.
5
Construction Law, p461
6
Blyth v Birmingham Waterworks Co [1856] 11 Ex 781 per Alderson J.
7
There is no duty not to cause economic loss, although economic loss associated with damage to (other) property can
be recoverable: Spartan Steel v Martin [1973] QB 27; and economic loss can be recovered in cases such as nuisance,
trespass, and negligent misstatement.
8
Res ipsa loquitur is a maxim meaning the thing speaks for itself and can assist claimants in establishing causation
where the exact mechanism is not known, e.g. Drake v Harbour and White [2008] EWCA Civ 25.
9
Recoverable loss or damage is that which was reasonably foreseeable.
10
The history of all great improvements shows failure of those who embark upon them Earle J in Turner v Garland
(1853). Failure with an untried process may be consistent with the exercise of reasonable skill and care.
11
This case established the neighbour principle as a preliminary point of law (although Mrs Donoghue did not bring a
claim or recover any damages) which changed the previous basis of claim i.e. judicial precedent.
12
Hunter v Canary Wharf [1997] AC 655.
13
Attorney General v PYA Quarries Ltd [1957] 2 QB 169.
14
Trespass to person is the interference with a persons right to security of his body to include battery (unlawful
physical contact), assault (fear of battery) and false imprisonment.
15
If there is serious damage then the offence of criminal damage may have been committed.
16
E.g. scaffolding or ladders, Westripp v Baldock [1938] 2 All ER 799.
17
E.g. Wollerton & Wilson Ltd v Richard Costain Ltd [1970] QB 479.
18
Rylands v Fletcher [1866] LR 1 Ex 265 at 279.
19
It needs to be foreseeable that a particular type of damage will occur as a result of the escape.
20
Examples include water, petrol in car tank, explosives, poisonous tree overhanging other land, gas, electricity. Non-
natural use means a special use which increases the possibility of harm to others. It does not include use for the
general benefit of the community. The escape of natural things (animal, rainwater) may be a nuisance or negligence.
21
See Cambridge Water Co v Eastern Counties Leather PLC [1994] 2 WLR 53 for a recent review of this tort.
22
As found in the House of Lords decision of Hedley Byrne v Heller and Partners Ltd [1964] AC 465, although liability
was avoided as a result of a disclaimer. See also Caparo v Dickman [1990] UKHL 2.
23
Such as the designer: Storey v Charles Church Developments Ltd (1995) 73 Con LR 1.
24
Barclays Bank plc v Fairclough Building Ltd (1995) 44 Con LR 35 in which specialists where held liable for negligently
spreading asbestos dust.
25
Storey v Charles Church, cited above.
26
Payne v John Setchell Ltd [2002] BLR 489 held that the engineer did not owe such a duty in relation to negligent
design of the foundations; although Mirant-Asia Pacific Ltd v Ove Arup PIL [2005] PNLR 10 TCC held that engineers
owed such concurrent duties.
27
The Occupiers Liability Acts 1957 (lawful visitors) and 1984 (trespassers and persons other than visitors).
28
[2012] EWHC B20 (QB).
29
Which are outside the scope of the Occupiers Liability Acts.
30
Wilsons and Clyde Coal v English [1938] AC 57.