Escargot dans la Maison

This paper examines the role of latent defects and pure economic loss in the construction environment. The paper examines the limbs of tort law established in the case of Donahue v Stevenson, and how the principles have evolved to be applied in recent construction cases. The paper discusses the proposition that latent defects may be better managed by a securitised insurance product rather than a reliance on remedies provided by sponsors, developers, contractors, suppliers and government. At the core of modern torts law is the differing approaches applied to pure economic loss when comparing the remedies for individuals with the remedies available for commercial large and small enterprises. The paper briefly considers other trends, such as the use of competition and consumer law and equity to deliver remedies.

Bruce Morrow
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