First Principles of Business Law

12. Negligence

12 (b) 3.1.  Elements of liability: foreseeable harm caused by the breach 

A is a contractor. He enters into a contract with B to lay an irrigation system in B's garden. The plans of B's garden clearly show that there is a municipal powerline buried underground all along one side of B's garden. Although these plans are available to A, he does not bother to examine them before starting to dig a ditch in which to lay irrigation pipes. Not realising the powerline is there, A cuts through it. This causes a loss of electrical power to B's neighbours.

One of these, C, is a self-employed engineer who uses computers to do his work. For the two days it takes to repair the powerline, C is unable to do the work that he would have done, and as a result he loses two days of the income he would otherwise have generated. Because he cannot do his work, C decides play golf. During the game he twists his back and has to get medical treatment. Assuming that C can establish liability in Negligence against A, to what extent would A be liable for C's losses?

(a) A would be liable both for C's loss of income for the two days during which he could not work, and also for costs of the medical treatment for C's back.

(b) A would be liable for C's loss of income for the two days during which he could not work, but not for the costs of the medical treatment C's back.