ABSTRACT
Principle I states that reparation ensured for damage caused by an act due to a failure of a public authority to conduct itself in a way which can reasonably be expected from it in law in relation to the injured person. There are several aspects of orthodox or traditional practice in the law of negligence that make it unsuitable as a vehicle for imposing liability of the kind required by principle I. This chapter suggests two possible approaches, namely, the private approach and the public approach, to the question of the extent to which the orthodox practice in the law of negligence should be altered to deal with the special problems presented by public authorities. There are a number of situations in which it seems likely that principle I require liability but in relation to which the traditional restriction on liability for pure economic loss rule it out.
