Measure Up!
If you are in the business of buying or selling commercial property, you might be interested in the recent High Court judgment of Mr. Justice Quirke.
A purchaser successfully sued a leading international Auctioneer who had been involved in the sale of a property, for negligent misstatement, when it transpired that incorrect floor measurements appeared in the sales brochure. The purchaser bought premises in the City Centre as an investment, with a view to renting the property as office space. When it became apparent that the property measured 21,248 square feet, and not the advertised 23,057 square feet, the purchaser sued the Auctioneer for the loss and damage suffered as a result of the misstatement.
The Auctioneer argued that a prudent purchaser would carry out a survey of the property and not rely on the measurements in the brochure before tendering. They relied on the disclaimer in small print at the bottom of the brochure “Whilst every care has been taken in the preparation of these particulars, and they are believed to be correct, they are not warranted and intending purchasers / lessees should satisfy themselves as to the correctness of the information given”.
The court did not find this defence acceptable from an established Auctioneer holding itself out as having particular skill and expertise in the area of commercial property and held as follows:
1. The brochure was designed to attract potential purchasers and it was to be
expected that purchasers would rely on the information contained in it. The
auctioneer owed a duty to the prospective purchaser to provide accurate information
in the brochure and should have known that the measurements would be relied upon.
2. The disclaimer in the brochure was insufficient in the circumstances and did not
negate the duty of care.
3. The loss suffered by the purchaser was reasonably foreseeable by the Auctioneer –
the potential rental income from the property would have been estimated on a square
footage basis, and the price tendered by the purchaser for the property would have
been higher on the basis of the inflated estimate of rental income.
4. A purchaser should not be expected to measure the floor area prior to tender,
entitling purchasers to rely on measurements in brochures published by experienced
and reputable Auctioneers.
The purchaser was awarded €350,000 in damages. This is a High Court decision, and therefore may be the subject of an appeal.
Rachel Rodgers
Solicitor
rrodgers@hayes-solicitors.ie
Zero-Risk Working Environment for Employees
Employers, breathe a sigh of relief! A recent European Court decision has now put an end to the uncertainty surrounding Irish Health and Safety Legislation and employers are no longer faced with the prospect of a strict liability/no fault environment in terms of their responsibility to employees.
In this case the Commission sought a declaration that UK Health and Safety legislation, which like Irish Legislation restricts an employer’s duty to what is “reasonably practicable”, had not properly implemented the EU framework directive on health and safety. The Commission argued that the intention of the framework directive is that apart from a few particular exceptions listed in the directive, an employer is liable for the consequences of any event detrimental to workers’ health, regardless of whether the employer is or is not negligent in adopting preventative measures.
The European Court disagreed with the Commission’s interpretation of an employer’s duty on the basis that it would effectively impose a standard of strict liability on employers. The Court referred to the provision in the directive which limited employers’ responsibilities in certain situations, such as in “unusual and unforeseeable circumstances” and held that it could not be inferred from this that the intention of the framework was to prescribe a no-fault liability regime for employers.
The implication of the decision of the European Court of Justice on Irish legislation is that Irish employers are not under a duty to provide a zero-risk working environment for their employees. Don’t forget, though, that health and safety law is onerous as it is, so make sure you know your obligations!
For further information on Health and Safety law contact Laura Fannin at
lfannin@hayes-solicitors.ie
Laura Fannin
lfannin@hayes.solicitors.ie
European Court Dismisses Argument for