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PROFESSIONAL NEGLIGENCE – CONSULTANTS – COMPUTER CONTRACTS – CONSULTANCY SERVICES

SB, a company carrying on various manufacturing and trading activities, brought proceedings against SH, who had been retained by SB to provide information technology consultancy services, alleging that SH had acted negligently and in breach of contract in recommending O, a supplier of computer systems, in connection with the acquisition of a computerised accounting system.

Held, giving judgment for SB, that SH had or should have known that the software provided by O was not well proven and that the hardware that O had supplied would be inadequate for SB’s purposes. The court defined SH’s responsibilities, described the breaches of those responsibilities, set out the principles by which damages would be assessed and dealt with SH’s allegations that SB had contributed to and failed to mitigate its losses.

STEPHENSON BLAKE (HOLDINGS) LTD v. STREETS HEAVER LTD [2001] Lloyd’s Rep. P.N. 44, Judge Hicks Q.C, QBD (OR)

“Current Law” March 2001