Caparo Industries plc v. Dickman

Caparo Industries plc v. Dickman is a key legal case that established the criteria for when a court recognizes a duty of care in negligence. The case involved a company relying on inaccurate financial reports prepared by auditors. The court decided that for a duty of care to exist, three conditions must be met: the harm must be foreseeable, there must be a sufficient special relationship (proximity) between the parties, and it must be fair and reasonable to impose a duty. This case set the "Caparo Test," guiding courts on when someone can be held legally responsible for failing to prevent harm.