THE PALACE OF JUSTICE CIVIL APPEAL NO. P-02-2074-2011 ...

Then we have the House of Lords case of Anns v Merton London
Borough Council [1978] AC 728 (HL(E)). It concerned a block of
flats that had been constructed on ground that was subject to
subsidence. The subsidence ultimately resulted in damage to the flats
and those tenants who held long leases brought proceedings against
the defendant local authority (and others) for negligently failing to
inspect the foundations of the premises before approving the building
works on the basis if plans that were submitted by the builders. The
crucial issue in this case was whether a duty of care was owed by the
local authority to the tenants. In this case there was no accident
causing damage in the form of injury to person or to other property.
The tenants’ loss was purely financial or monetary: the impact of the
subsidence on the value of their property interest or, alternatively, the
cost of repairs.
In determining whether a duty of care existed, Lord Wilberforce
advocated a two-stage test, the two components being foreseeability
and policy:
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