Exclusionary Rule Case Study

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The “exclusionary rule” was recognized by the High Court as being the rule which rejects any liability for negligence causing merely pure economic loss . However, the exclusionary rule established a number of exceptions in the case of Hedley Byrne & Co Ltd v Heller & Partners Ltd . The exceptions developed, were found to have been arbitrary, imperfect and consequently described by McHugh J as having, “no single principle underlying them”. In cases of pure economic loss it was acknowledged that the test of reasonable foreseeability of loss was not adequate . The test of foreseeability and proximity was submitted by Lord Bridge in the decision made in Caparo Industries Plc v Dickman . The cases of Hawkins v Clayton and Hill v Van Erp will …show more content…

In this case the solicitor in agreement with the client’s directions, prepared a will which would allow the client’s property to be given to Mrs. Van Erp, her friend. The will was signed by Mrs. Van Erp’s husband which was instructed by the solicitor, resulting in the disposition of the property to be void . Mrs Van Erp claimed that the solicitor breached a duty of care concerning herself as an anticipated beneficiary , which was done successfully. This was also established in Badenach . In Hill v Van Erp , the testatrix and the proposed beneficiary both had an equal interest in the statement made by the testatrix and therefore it is recognising an onus to the intended beneficiary which would not include any conflict with the responsibilities owed by the solicitor to the client . It was held that the solicitor was in breach of his duty of care to the client, by not warning the client of the risk of the daughter making a family provision claim, but by also failing to give the right advice to the client in regards to the right steps to take to avoid exposing the estate to such claim

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