Spartan Steel v Martin (1973) examines the limits of economic loss recovery in negligence. The defendant’s actions caused a power outage, affecting the plaintiff’s operations. The court distinguished between recoverable consequential losses and non-recoverable pure economic losses.
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Also known as: Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd
🏛️ Court: Court of Appeal (Civil Division) 🗓️ Judgment Date: 22 June 1972 🗂️ Where Reported: [1973] Q.B. 27; [1972] 3 W.L.R. 502; [1972] 3 All E.R. 557 📍 Jurisdiction: United Kingdom
⚖️ Legal Principles
1️⃣
Distinction Between Economic and Physical Loss: The court differentiated between consequential economic loss directly tied to physical damage (recoverable) and pure economic loss not arising from physical harm (unrecoverable). This highlighted limits on liability in negligence cases.