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STEVENSON (1932)
Donoghue could not sue Stevenson for breach of contract, because a friend had
purchased the drink for her. Instead, her lawyers claimed that Stevenson had
breached a duty of care to his consumers and had caused injury through negligence
– an area of civil law which at the time was largely untested. Stevenson’s lawyers
challenged Donoghue’s action, on the basis that no precedents existed for such a
claim. They referred to an earlier action by Donoghue’s lawyer, Mullen v. AG Barr,
where a dead mouse was found in a bottle of soft drink; judges in this case
dismissed it because of a lack of precedent. Donoghue’s initial action failed,
however she was granted leave to appeal to the House of Lords, which at the time
still had the judicial authority to hear appellate cases. The leading judgement,
delivered by Lord Atkin in 1932, established that Stevenson should be responsible
for the well-being of individuals who consume his products, given that they could
not be inspected. The case was returned to the original court; Stevenson died
before the case was finalised and Donoghue was awarded a reduced amount of
damages from his estate.
Negligence. Firstly, the House of Lords ruling affirmed that negligence is a tort. A
plaintiff can take civil action against a respondent, if the respondent’s negligence
causes the plaintiff injury or loss of property. Previously the plaintiff had to
demonstrate some contractual arrangement for negligence to be proven, such as the
sale of an item or an agreement to provide a service. Since Donoghue had not
purchased the drink, she could prove no contractual arrangement with Stevenson –
yet Lord Atkin’s judgement established that Stevenson was still responsible for the
integrity of his product.
Duty of care. Secondly, the case established that manufacturers have a duty of
care to the end consumers or users of their products. According to Lord
Atkin’s ratio decendi, “a manufacturer of products, which he sells… to reach the
ultimate consumer in the form in which they left him… owes a duty to the
consumer to take reasonable care”. This precedent has evolved and now forms the
basis of laws that protect consumers from contaminated or faulty goods. These
protections began as common law but many have since been codified in legislation,
such as the Trade Practices Act (Commonwealth, 1974).
Neighbour principle. Thirdly, the Donoghue v. Stevenson case produced Lord
Atkin’s controversial ‘neighbour principle’, which extended the tort of negligence
beyond the tortfeasor and the immediate party. It raised the question of exactly
which people might be affected by negligent actions. In Donoghue’s case she had
not purchased the ginger beer but had received it as a gift; she was a neighbour
rather than a party to the contract. Atkin said of this principle: “You must take
reasonable care to avoid acts or omissions which you can reasonably foresee would
be likely to injure your neighbour. Who, then, in law, is my neighbour? The
answer seems to be persons who are so closely and directly affected by my act that
I ought to have them in [mind] when I am [considering these] acts or omissions.”