In that regard, the Kamloops case is significant because the Supreme Court adopted the "proximity" test set out in the House of Lords decision, Anns v Merton LBC.

A house in Kamloops, British Columbia, had insufficient foundations, which were discovered upon inspection by the city.

Finally, the city argued that the damages sought were considered to be "pure economic loss," which at law were generally not recoverable.

While the lawsuit had commenced after the limitation period, if measured from the time the city failed to properly inspect.

The Supreme Court adopted the Anns test (from Anns v Merton LBC), which allows a claim in tort for economic loss when: Since its decision in Kamloops, the Supreme Court has enumerated five categories of compensable economic loss, originating in Canadian National Railway Co v Norsk Pacific Steamship Co,[3] While the categories are not closed, those that have been identified to date are: Anns has since been overturned in the United Kingdom, but on a number of occasions, the Supreme Court has reaffirmed the Anns test in Canada, including in Dobson (Litigation Guardian of) v Dobson[4] and Cooper v Hobart.