Facts
Caparo bought shares in a company relying on audited accounts that were allegedly prepared.
Issue
Did the auditors owe a to an investor who relied on the accounts?
Held
No. The auditors' duty was owed to the shareholders as a body, for the purpose of overseeing management, not to investors deciding to buy shares.
Principle
The three-stage test: foreseeability of harm, proximity, and that it is fair, just and reasonable to impose a duty.
Why it matters
The leading modern test for a duty of care.
Cited in these chapters
Cite this page
Caparo Industries plc v Dickman [1990] 2 AC 605 (Lanbuk) <https://www.lanbuk.com/llb/torts/cases/caparo-v-dickman> accessed 31 October 2026
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This summary is a Lanbuk study aid based on the generally known facts and reports of the case. It is not legal advice.