DF Estates v Church Commissioners [1989] AC 177

House of Lords

Basic Facts: C, the lessee of a flat, sued the builders for negligent plastering, seeking recovery for the cost of repairs.

Issue for the Court: What constitutes property damage as opposed to economic loss?

Held : The cost of repairs was not recoverable as it amounted to pure economic loss

Lord Bridge of Harwich:

• Negligent construction causing damage only to the structure itself is considered pure economic loss (PEL), not property damage.

• Repairs for a dangerously built structure that has not caused further damage or injury fall under PEL, which is not recoverable.

• The court rejected the argument that complex structures should be treated as separate parts, reaffirming that only damage beyond the structure itself constitutes property damage.