What Is the Caparo Three-Part Test?

The Caparo three-part test helps a court decide whether a defendant owes a claimant a duty of care in a negligence claim, particularly where the alleged duty is not already established. The court considers whether harm was reasonably foreseeable, whether there was sufficient proximity between the parties, and whether it is fair, just and reasonable to impose a duty.

The three parts

1. Reasonable foreseeability: Could the defendant reasonably have predicted that their conduct might harm someone in the claimant’s position?
2. Proximity: Was the relationship between the defendant and claimant sufficiently close? This means closeness in a legal sense, not necessarily physical distance.
3. Fair, just and reasonable: Would it be appropriate to impose a duty of care in the circumstances? The court can consider the wider consequences of doing so.

Duty of care means a legal obligation to take reasonable care to avoid causing harm to another person. The three parts help determine whether that obligation exists; they do not, by themselves, prove that the defendant acted carelessly or caused the claimant’s loss.

Caparo in practice

In Caparo Industries plc v Dickman, Caparo relied on a company’s audited accounts when buying shares and later claimed the auditors owed it a duty of care. Although an investor’s financial loss might be foreseeable, the accounts were not prepared to guide individual investment decisions. The necessary proximity was therefore lacking, and the court did not impose the claimed duty.

Common exam mistake: Do not assume that foreseeable harm alone establishes a duty of care. Explain proximity and whether imposing a duty would be fair, just and reasonable. Also, do not apply the test mechanically to every negligence question: where a duty is already established, identify that established duty first.