WHAT HAPPENS IF THOSE IN AUTHORITY MAKE A MISTAKE

mistake meaning

1:  a wrong judgment : misunderstanding.
2:  a wrong action or statement proceeding from faulty judgment, inadequate
     knowledge, or inattention.

We all make mistakes and want everyone to understand it was "Just a Mistake". What happens if someone tries to cover-up their mistake because building work has started and to admit to the mistake at this point would not only be emabarrassing but very costly. Maybe the responsible person at the Local Authority had believed that what someone else had said or done was correct, acted upon it and later found out it was not true.
When someone points out that what the Local Authority have done is wrong would the Local Authority do the right thing and admit to it or would the Local Authority defend their mistake and close ranks.
A case that has caused a great deal of concern for those faced with this precarious situation is Murphy v Brentwood District Council [1991] 1 AC 398^* in relation to recovery for pure economic loss tort^**.