ON 15 JULY 1982, the House of Lords delivered Junior Books Ltd v Veitchi Co Ltd  UKHL 4 (15 July 1982).
Junior Books contracted with a business to lay a composite flooring in their factory. Veitchi was sub-contracted to do the work. The work was defective so Junior Books sued Veitchi, not the main contractor, for damages including the cost of replacing the floor and consequential business interruption. The claim was based in tort as there was no contractual relationship between Junior Books and Veitchi.
The House of Lords held that there was sufficient proximity between Junior Books and Veitchi to establish a duty of care and no reason to restrict that duty.
The House of Lords accepted that pure economic loss may be foreseeable when there is a sufficient degree of proximity between the parties.
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