In Grant v Australian Knitting Mills (1935) 54 CLR 49, the UK Privy Council ('PC')

upheld the appeal brought by the plaintiff concerning the decision of the High

Court of Australia. The PC held that the decision of the Supreme Court of South

Australia was correct in finding that both the manufacturer, Australian Knitting

Mills, and the retailer, James Martin & Co, were liable to the plaintiff, Dr Grant.

Required: With reference to Grant v AKM above, and also the earlier UK House

of Lords decision in Donoghue v Stevenson (1932) AC 562, discuss the nature

and significance of the "neighbour principle" in respect of the duty of care element

in a common law action in the tort of negligence.