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Spartan Steel & Alloys Ltd v Martin & Co [1973]

Facts

  • Martin & Co negligently cut the power to Spartan Steel’s factory
  • Spartan steel claimed for loss of profit and cost for a melt currently in their furnace, and loss of profit on 4 further melts in the furnace

Issue

  • In what circumstances could recovery be permitted for ‘consequential loss’

Decision

  • Latter claim failed, the claims regarding the melt in the furnace at the time succeeded

Reasoning

  • The successful claims were due to the melt being a direct consequence of the power cut, further damage was too remote
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