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

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

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which ought to negative, or to reduce or limit the scope of the duty or the<br />

class of person to whom it is owed’.<br />

And three years later, in Yuen Kun Yei v Attorney-General of Hong<br />

Kong [1988] AC 175 (PC), the Privy Council hearing an appeal from<br />

the Hong Kong Court of Appeal ruled that the two-stage test in Anns<br />

v Merton should not be regarded as in all circumstances a suitable<br />

guide in determining whether or not a duty of care was owed. In the<br />

words of the Privy Council (at p. 194):<br />

In view of the direction in which the law has since been developing, their<br />

Lordships consider that for the future it should be recognized that the two-<br />

stage test in Anns v Merton is not to be regarded as in all circumstances<br />

a suitable guide to the existence of a duty of care.<br />

Instead, according to the Privy Council, it was necessary to have<br />

regard to whether a close and direct relationship between the parties<br />

existed and this involved consideration of all the circumstances,<br />

including the reasonable contemplation of injury or damage being<br />

caused to the plaintiff by the defendant’s failure to exercise<br />

31

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