English Court of Appeal Considers Liability for Negligent Misrepresentation on a Web Site

In Patchett v Swimming Pool & Allied Trades Association Ltd ([2009] EWCA Civ 717), the England and Wales Court of Appeal (Court) found that the defendant trade association (Association), operating a web site that endorses swimming pool builders did not have a duty of care to the plaintiffs, the Patchetts, who relied on what they believed to be an endorsement of a builder that later became insolvent. The Patchetts selected a builder who was listed on the Association’s site. However, in fact, the Association had not assessed the builder’s financial stability and was therefore not in a position to endorse it. The decision turned on the fact that the web site clearly referred to the availability of an “information pack” that the Association expected buyers to obtain from it but which the Patchetts did not request. If the Patchetts had requested the information pack, they would have become aware that the builder they selected was not endorsed by the Association. As a result, two of the three Justices of Appeal concluded that there was insufficient proximity between the Patchetts and the Association to justify imposing a duty of care because the Association would not reasonably have anticipated that anyone would rely on the accuracy of statements on its web site unless they requested an information pack. For the full reasons for judgment, see: http://www.bailii.org/ew/cases/EWCA/Civ/2009/717.html For a related article, visit: http://tinyurl.com/yh8yd7t Summary by: Tom Feather