Cases - Yazhou Travel Investment Co Ltd v Bateson Starr

Record details

Name

Yazhou Travel Investment Co Ltd v Bateson Starr

Date

(2005)

Keywords

Negligence in valuations and surveys

Summary

Where Y engages B to perform a service and B further engages D as an independent contractor to assist on that project, does D owe Y a duty of care in addition to its duty towards B and, if so, what is the scope of that duty?

The claimant 'Y' instructed the defendant firm of solicitors 'B' to conduct the conveyance purchase of advertising boards and related rights. B engaged independent solicitors 'D' to assist in the project. A dispute arose as to whether Y had managed to acquire proper title to the boards and Y sued B as well as the independent solicitors, D.

It was held that D owed a duty of care to Y directly. Although B had been formerly retained on the project, in fact D were the only solicitors who had worked on the conveyance. Y relied on D to deal with that conveyance properly and D were aware of that. There was a proximity between the parties which further justified imposing a duty of care to act with reasonable care and skill as between Y and D directly.

Independent contractors will owe a duty of care in tort towards the primary client in addition to the intermediary instructing them where there is sufficient proximity between the parties, assumption of responsibility and reliance by the primary client.

Surveyors who work closely alongside the primary client, in the position of independent contractor or even being instructed on an ad hoc through an intermediary, should be aware that the law may impose duties of care between them and the primary client where the above criteria are met and in spite of there being no contractual agreement in place.