Caparo Industries plc v. Dickman [1990]
[1990] 2 AC 605 · House of Lords · United Kingdom
Summary
Leading UK duty of care case.
Facts
Investors alleged auditors owed them a duty after audited accounts influenced share purchases.
Issue
When does a duty of care arise for negligent misstatement?
Held
No duty was owed to investors for the takeover purpose.
Ratio Decidendi
The Caparo test asks foreseeability, proximity, and fairness for novel duty situations.
Reasoning
Duty requires foreseeability, proximity, and that imposing duty be fair, just, and reasonable.
Significance
Leading UK duty of care case.
Related Cases
No related cases listed.
Exam Tips
Review the ratio and reasoning before applying this case in problem questions.