Facts of the case In the eve 26 August 1928, Donoghue visited Wellmeadow Caf with a friend. The said friend who was with Donoghue, ordered a pear and ice for herself, and ordered ice-cream and ginger beer for Donoghue. Owner of the caf, Mr. Minchella brought over a glass tumbler of icecream and ginger beer with a brown and opaque bottle labelled "D. Stevenson, Glen Lane, Paisley". The bottle being made of opaque brown glass, Donoghue had no reason to suspect that the bottle contained anything suspicious. Donoghue drank some of the ice-cream and beer float. While pouring remainder of the contents of bottle a decomposed snail also came out of the bottle. In consequence of the aforementioned incident, Donoghue was diagnosed with gastroenteritis and shock after being admitted to Glasgow Royal Infirmary. Plaintiffs arguments: Donoghue claimed that Stevenson had a duty of care and there was breach of duty since the bottle contained a decomposed snail. And this breach of duty was caused to have Donoghues illness. Therefore, Donoghue asked for the compensation from the manufacturer. Defendants arguments: Stevenson denied the claims of having snail found in his beer bottle and the illness suffered by Donoghue was due to her own conditions rather than it being caused by the consumption of the beer. He further pleaded by stating: (1) that the claim had no legal basis, (2) that the facts could not be substantiated, (3) that he had not caused Donoghue any injury and (4) that the claimed amount was excessive. Judgement: The judgement was delivered by Lord Atkin in 1932. The judgement stated that Stevenson is supposed to be responsible for the well-being of individuals who consume his products. Stevenson had died before the judgement was delivered and Donoghue was compensated amount of damages from Stevensons estate. Principle of Law dealt in the case Neighbour principle: Developed by Lord Atkin, the principle states that one must take reasonable care to avoid acts or omissions that could reasonably be foreseen as likely to injure one's neighbour. A neighbour was identified as someone who was so closely and directly affected by the act that one ought to have them in contemplation as being so affected when directing one's mind to the acts or omissions in question. The neighbour principle therefore provides the claims in situations of negligence fo affected parties by identifying the set of people to whom duty maybe owed. The principle is that one must take reasonable care to avoid acts or omissions that could reasonably be foreseen as likely to injure one's neighbour. A neighbour was identified as someone who was so closely and directly affected by the act that one ought to have them in contemplation as being so affected when directing one's mind to the acts or omissions in question. Neighbours principle isnt supposed to provide support for the unlimited claims, it is only supposed to owe duty of care to those who are close enough to be affected by the situation.
UTSAV VADGAMA|IPM2014106|SECTION B MERCANTILE LAW AND COMPANY LAW ASSIGNMENT 1
Donoghue v Stevenson (1932)
Principle of negligence: Negligence is a failure to exercise the care that a reasonably prudent person would exercise in like circumstances. It deals with consequences arising by carelessness rather than intentional harm. In the case of Donoghue v Stevenson, there is an act of negligence by Stevenson as he wasnt able to make sure that the bottle contained no foreign elements. Duty of care: According to Lord Atkins ratio decendi, a manufacturer of products, which he sells to reach the ultimate consumer in the form in which they left him owes a duty to the consumer to take reasonable care. Duty of care was owed by Stevenson to Donoghue which he failed to provide thus, there was breach of duty by Stevenson. Impact of the case on business The case dealt with the principle of neighbour, principle of negligence and duty of care. The circumstances of the case were not remarkable in itself but the decision was. The decision made in the case made it precedent for the many such cases to come in the area of consumer welfare. Since the 1932 decision in Donoghue v. Stevenson, manufacturers have had to meet a high standard of care in order to prevent injury to consumers who use their products. To meet that standard, manufacturers have to make sure that 1) the design of the product is free from harmful defects; 2) the product is properly manufactured; 3) the consumer is informed about how to use the product safely; and 4) the consumer is warned of risks associated with using the product. Therefore, high standards for manufacturers were set and if they arent met, consumers are protected under Consumer protection act, which safeguards them against such negligence. Further Developments The neighbour principle remains very crucial in duty, in the subsequent years the courts have developed more complex tests to determine negligence and tort. These tests contain key element of foreseeability, have attempted to reflect more accurately some of the other factors inherent in establishing duty. The Anns Two-stage test is derived from neighbours principle. The two stages being, proximity based on foreseeability of harm and considering of policy factors. Difficulties arising out of The Anns Two-stage test led to development of The Caparo Three-part Test. The three stages being, foreseeability, proximity and for imposing a duty to be fair, just and reasonable in the circumstances. Similar Cases Hedley Byrne v Heller (1963): Hedly Byrne, an advertising firm wanted assurance that they could provide credit to a company called Eazipower. The financial stability was assured by Eazipowers bank, the defendants. Soon after giving credit, the Eazipower defaulted and the claimants were liable for Eazipowers debts. Home Office v Dorset Yacht Co Ltd (1970): Some young offenders were doing some supervised work on Brown Sea Island under the Borstal regime. One night the Borstal officers retired for the evening leaving the boys unsupervised. Seven of them escaped and stole a boat which collided with a Yacht owned by the claimant. UTSAV VADGAMA|IPM2014106|SECTION B MERCANTILE LAW AND COMPANY LAW ASSIGNMENT 1