4 - Liability in negligence for economic loss and psychiatric injury Flashcards
What is pure economic loss?
where the loss isnt related to an injury or loss of property
Is there a duty of care owed over pure economic loss?
NO! is only owed if there is damage to property or injury
When may liability be imposed over economic loss?
When the loss was caused by negligent misstatement, and not a negligent act
When may liability be imposed over economic loss?
When the loss was caused by negligent misstatement, and not a negligent act
What did they case of hedley bryne establish?
a defendant only owes a duty of care to the claimant when making a statement if there is a special relationship between them.
What defines a ‘special relationship’?
1 - the D possesses some special skill relating to the statement
2 - the d knows its highly likely that the C will rely on the statement
3 - the C does rely, resulting in economic loss
4 - it was reasonable for the claimant to do so
Caparo v Dickman 1990
Th defendant didn’t even know of the Cs existence, let alone his reliance on his statement. cant impose a duty
Hedley bryne and Co LTD v Heller and Partners LTD 1963
an example of a negligent misstatement, as the c relied on a reference from the D about a client and then lost money
Define psychiatric injury
A long term diagnosed mental injury, which is greater than shock or grief
What ‘emotions’ do not amount to psychiatric injury?
grief
sorrow
shock
panic
terror
What is a primary victim?
someone in the zone of physical danger - like the person in a car involved in a collision
What is a secondary victim?
someone who is not in the zone of physical danger but a witness of a horrific event - like someone watching a collision, with their family member inside
How is a primary victim established?
it is an objective test
What must the claimant in a case of psychiatric injury prove?
physical harm was foreseeable ( the psychiatric harm doesn’t have to be)
When is the Alcock test used?
To establish is someone is a secondary victim?
