The problems with the neighbour principle was that: no clear boundaries were set, the 'floodgates of litigation opened and the state became claim conscious.
The 'modern-day test' was developed in Caparo v Dickman, using a 3 stage test to establish a duty of care.
1) Is it reasonably foreseeable that a person in the claimant's position would be injured?
2) Is there sufficient proximity between the parties?
3) Is it fair, just and rasonable to impose liability on the defendant?
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