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The law of torts

Illustration 6 – Negligence

SPARTAN STEEL ALLOYS v MARTIN CO CONTRACTORS 1972

Facts:

The claimant was halfway through smelting a steel ingot when a cable was
damaged by the defendant, causing the electricity supply to be cut off.

Held:

The claimant was entitled to damages for the damaged ingot (physical harm)
and the loss of profit on that ingot (financial losses due to physical harm).
However, they were not entitled to damages for the lost profits due to the
general disruption to the business as these were purely financial in nature.

 Even where the claimant is able to show the loss was suffered as a result of the
defendant’s breach the court will not allow recovery of that loss if it is
considered to be too remote (see part 4 below).

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