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Ryder N., Griffiths M., Singh L. Commercial law - principles and policy 2012.pdf
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Part 4 Chapter 1

Negligence and the Rise of

Product Liability

Contents

Introduction

273

Background

274

Development of negligence

275

4â The move to strict liability

280

Types of defect

281

6â Developments in strict liability

284

Recommeded reading

296

1â Introduction

This chapter looks at the development of tort law and its application to prod- uct-related injuries. Thus, it considers both the tort of negligence and the policy lying behind the development of strict liability.

The chapter is structured as follows. Section 2 considers the background to the development of the law of negligence and strict liability and the relationship between the two legal regimes.

Section 3 considers the development of the law of negligence and introduces the essential elements of the tort, namely, (i) the duty of care as enunciated in Donoghue v. Stevenson,1 which laid down that the manufacturer of a product owes a duty of care in respect of that product; (ii) the persons to whom the duty is owed as identified through the ‘neighbour principle’ as laid down by Lord Atkin in Donoghue v. Stevenson; (iii) the standard of care owed by the manufacturer; (iv) the impact of any intermediate inspection; (v) the need to establish a breach of the duty of care; and (vi) the impact of contributory negligence on liability.

Section 4 introduces the concept of strict liability and the change in emphasis away from the fault of the manufacturer and towards the defectiveness of the product.

1 [1932] AC 562.

274

 

Negligence and the rise of product liability

 

 

 

 

 

Section 5 deals with the different types of defect, namely, manufacturing

 

 

defects; design defects; and ‘duty to warn’ defects.

 

 

Section 6 looks at the development of strict liability and the policies that led

 

 

to this movement in liability for product-related injuries. The section consid-

 

 

ers liability in the United States under the decision in Greenman v. Yuba Power

 

 

Products2 and the Second and Third Restatements of Torts; the approach in

 

the United Kingdom with the recommendations of the Pearson Commission

 

and the Joint Law Commissions; the recommendations of the Strasbourg

 

Convention; the development, underlying policy and impact of the EC

 

Directive on product liability, including a review of the EC Directive since its

 

passage.

2â Background

Tortious liability for injuries caused by defective products is relatively recent when compared with contractual liability. The contractual requirement of merchantable quality was recognised in the early nineteenth century,3 while negligence only came to the fore with the decision in Donoghue v. Stevenson4 in 1932. The advent of strict liability in the United Kingdom in Part I of the Consumer Protection Act 1987 further developed tortious liability and has resulted in the current two-strand regime, namely, negligence and product liability, both of which are important in providing comprehensive protection for both persons and businesses affected by defective products.

Strict liability has not replaced negligence; rather, the two regimes complement each other. Thus, claims for product-related death and personal injury can be made through both regimes, although, it may be preferable to make a claim under strict liability as it merely requires proof of defectiveness and causation without any requirement to prove fault. However, if the tenyear cut-off period for a strict liability claim has expired, the claimant may still be able to claim in negligence, assuming that the claim complies with the applicable time limits.5 Further, negligence remains crucial in respect of claims for property damage as the two systems diverge in respect of what liability will arise. While damage to personal property over £275 can be claimed under both systems, tortious claims for damage to all business property and personal property of less than £275 can only be made through negligence. Given the potential range of damage that may be caused by a single incident, it is entirely possible that a claim will include both negligence and strict liability. Further, if the injured party purchased the defective product, a claim may also lie in contract for breach of terms relating to satisfactory

2

377 P.2d 897 (1963), Supreme Court of California.

3

Gardiner v. Gray (1815) 4 Camp. 144.â 4â [1932] AC 562.

5

See the Limitation Act 1980.