Tort Seminar 9 - Miranda by Claire Turner

claire43 — 2023-11-30 10:45:25 UTC

Miranda owns and operates an extensive free-range chicken farm and egg packing factory. Miranda recently decided that the time had come to borrow some money to expand her business. The financial advice column in ‘Chicken and Egg Retail’, a leading trade magazine for the poultry industry, highly recommended the loan company, Capon Finance Ltd.

Miranda had a meeting with Ranjit, her solicitor, to discuss her will. During the meeting she asked Ranjit his opinion of Capon Finance. Ranjit said that he didn’t really deal with these matters, but called in his colleague, Harold, who spoke to Miranda and said that Capon Finance were ‘very good people to deal with’. He also suggested a number of websites that she could look at before making a final decision.

Miranda took out a loan with Capon Finance Ltd, but has just discovered that they are well known for charging excessive interest rates on money they have lent.

This morning, workers employed by Galton Cables Ltd, whilst working on the road which passes Miranda’s farm, severed the electricity cable which supplies Miranda’s packing factory. As a result of the interruption in electricity, hundreds of eggs were crushed in the machinery. Cleaning the machinery will cost Miranda £5,000. Due to the severity of the damage to the cable, the electricity supply will not be returned for 24 hours. Miranda will earn no profits from her packing operation during that period

Link to Prezi

claire43 — 2024-11-21 17:30:20 UTC

Spartan Steel

claire43 — 2024-11-21 17:30:26 UTC

Issues

ashbyjake61 — 2025-11-25 15:24:59 UTC

Is Miranda able to claim lost profits

Is Mirranda able to claim for the cleaning

Is Miranada able to claim for misinformation from solicitor

Solicitor liability

ashbyjake61 — 2025-11-25 15:28:06 UTC

He had a b2b special relationship

no contract, but his words could be argued to be actionable, depends on how the courts feel on the day

He did say to check other websites, Miranda did not do due diligence.

Is it reasonable for Miranda to fully rely on it?

Caparo ^

reasonable reliance = arguable
assumption of responsibility = fine
fair just and reasonable = arguable

THE ISSUES

2025-11-25 15:29:56 UTC

Is Miranda able to claim for the lost profits
is miranda capable to claim for the cleaning

Damages claim

ashbyjake61 — 2025-11-25 15:31:36 UTC

crushed eggs = physical damage, claim is likely to succeed for cleaning and replacement of eggs
Lost profits may not be fully recoverable due to "floodgates"

Claim 1 - Excessive interest she didn't need to pay. Defendants - Ranjit, Harold, Chicken and Egg Retail

claire43 — 2025-11-25 15:47:58 UTC

Pure economic loss - Spartan Steel

Exception - Hedley Bryne - Assumption Responsibility by reason of a special relationship and reasonable reliance. Customs and Excise - Expanded in Caparo criteria - purpose

Ranjit - no advice

C&E - Purpose and communication aren't known (Caparo)

Harold - Claimant will argue - negligent statement. Business relationship (Esso Petroleum v Mardon), Purpose made known? Hasn't stated the purpose. Reasonable reliance - advised her to get independent advice so not reasonable to rely on the advice of a solicitor who advises on law not finance.

Claim 2 - crushed eggs and cleaning

claire43 — 2025-11-25 15:50:38 UTC

Duty of care - Galton Cables - Negligent action - foreseeability of harm, anyone affected by the cable.

Breach - not taken care

Causation and remoteness?