In the 1970s, a local authority approved the construction of a block of flats. The foundations were inadequate, and over time the building began to suffer from structural movement. The purchasers of the flats discovered the defects and sued the local authority for negligence, claiming that the authority should have ensured the foundations met proper standards. At the time, the leading test for duty of care was the two-stage test from Anns v Merton LBC, which first asked whether there was a proximate relationship and then whether any policy considerations should limit the duty. The House of Lords initially found that the local authority owed a duty of care to the purchasers.