To show that David owes Carly a duty of care the test given in the case of Caparo needs to be applied. The facts of the Caparo Industries plc v Dickman [1990] are C purchased shares in Fidelity Plc in reliance of the accounts, which stated that the company had made a pre-tax profit of £1.3M. In fact Fidelity had made a loss of over £400,000. Caparo brought an action against the auditors D claiming they were negligent in certifying the accounts. It was held that no duty was owed due to insufficient proximity. Lord Bridge in this case illustrated that the law has moved on, the Anns approach might lead to the failure to weigh
To show that David owes Carly a duty of care the test given in the case of Caparo needs to be applied. The facts of the Caparo Industries plc v Dickman [1990] are C purchased shares in Fidelity Plc in reliance of the accounts, which stated that the company had made a pre-tax profit of £1.3M. In fact Fidelity had made a loss of over £400,000. Caparo brought an action against the auditors D claiming they were negligent in certifying the accounts. It was held that no duty was owed due to insufficient proximity. Lord Bridge in this case illustrated that the law has moved on, the Anns approach might lead to the failure to weigh