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Law Cases
Tort Law Cases
Product Liability Cases

Muirhead v Industrial Tank Specialities [1986] QB 507

Country:
United Kingdom
By Oxbridge Law Team
Goff L
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  • Plaintiff bought pumps for keeping its lobsters alive from X, manufactured by Defendant. They were faulty and the lobsters died.

  • Plaintiff sued Defendant for causing pure economic loss.

  • CA rejected this since, for pure economic loss, there has to be a special degree of proximity (i.e. a special relationship) + reliance + assumption of responsibility.

    • There was not sufficient proximity between a purchaser and a manufacturer in pure economic loss cases. 

Goff L

  • For pure economic loss, the purchaser can only sue the immediate vendor and not a manufacturer.

  • Junior Books is distinguished as giving an exceptionally close relationships on its own facts. There was also reliance.

  • Therefore it is not an authority for the proposition that the manufacturers or TPs are commonly liable for economic loss. 

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