The case of Donoghue v Stevenson remains a foundational decision in English tort law, particularly within the field of business law where it defines the scope of a manufacturer’s duty of care. This essay examines the factual background, the legal principle it established, and its enduring implications for commercial practice. The discussion draws upon the case itself and subsequent academic analysis to evaluate its contribution to the modern law of negligence.
Background of the Case
In 1928, Mrs May Donoghue consumed ginger beer purchased by a friend in a Paisley café. The bottle allegedly contained a decomposed snail, causing her gastro-enteritis. As she had not purchased the drink herself, she could not rely on contract law and therefore brought an action in negligence against the manufacturer, David Stevenson. The House of Lords, by a majority of three to two, held that Stevenson owed a duty of care to the ultimate consumer. This factual context is essential because it highlights the limitations of privity of contract at the time and the consequent need for a broader tortious remedy.
The Neighbour Principle and Duty of Care
Lord Atkin’s celebrated speech formulated the “neighbour principle”: individuals must take reasonable care to avoid acts or omissions that they can reasonably foresee would be likely to injure their neighbours. Neighbours were defined as “persons who are so closely and directly affected by my act” that the actor ought reasonably to have them in contemplation (Donoghue v Stevenson [1932] AC 562). The principle marked a decisive shift from the previous, more fragmented categories of duty. It supplied a general test that courts could apply across diverse factual situations, thereby expanding liability for manufacturers and, by extension, for other commercial actors. However, later decisions revealed limitations; the test proved too broad in some contexts and required refinement through concepts such as proximity and fair, just and reasonable imposition of a duty, as articulated in Caparo Industries plc v Dickman [1990] 2 AC 605.
Implications for Business Law
From a business perspective, Donoghue v Stevenson imposed on manufacturers an ongoing obligation to ensure product safety throughout the supply chain. Companies must therefore implement systematic quality controls and risk assessments, practices now reinforced by statute in the Consumer Protection Act 1987. The decision also encouraged the development of professional indemnity insurance and standardised contractual disclaimers, illustrating how judicial expansion of duty can shape commercial behaviour. Nonetheless, the principle’s generality has produced ongoing litigation, demonstrating both its adaptability and the practical difficulty of predicting the precise boundaries of liability.
In conclusion, Donoghue v Stevenson established a general framework for negligence that continues to influence business practices by clarifying the extent of manufacturers’ responsibilities to consumers. While subsequent case law has qualified the original test, the decision’s core insight—that reasonable foresight generates legal obligation—remains central to undergraduate study of business law.
References
- Donoghue v Stevenson [1932] AC 562.
- Horsey, K. and Rackley, E. (2021) Tort Law. 7th edn. Oxford: Oxford University Press.
- McBride, N.J. and Bagshaw, R. (2018) Tort Law. 6th edn. Harlow: Pearson.

