9 - TORT - PEL

Question 1

What are examples of PEL?

Answer 1

• Made bad investment 📉
• Loss arising from damage to property from another 🏚️
• Defective items 🪆

Question 2

What is a case on PEL from damage to another?

Answer 2

cattle auction tried to sue farmer for releasing foot and mouth causing animal auctions to dry up. Claim unsuccessful as PEL.

👨‍⚖️🦠🐄📉

Question 3

What is a case on PEL from defective item?

Answer 3

C bought a defective house which had been approved as fit by the council and had to sell at a reduced price as a result. No claim as PEL as house had always been defective.

💪🏚️📉

Question 4

What case demonstrates the difference between PEL, Consequential loss and Damage?

Answer 4

D damaged cable powering a metal forge causing it to lose power:
- Ruined metal in forge = damage 🧑‍🍳⭐️🔥
- Loss of profit on damaged metal = consequential loss ⭐️💷
- Loss of profit due to downtime = PEL 🕰️📉❌

Question 5

What are the exceptions to the general rule on PEL?

Answer 5

1. Negligent statement or act: w/ act, no DoC owed, w/ statement, may be owed
2. Negligent will
3. Negligent reference

Question 6

What 3 tests can be applied to determine if a DoC is owed for a negligent statement?

Answer 6

1. Reasonable Reliance 🧐
2. Voluntary assumption of responsibility 🦸
3. Special relationship of trust and confidence🫂

Question 7

What is necessary to satisfy the reasonable reliance test?

Answer 7

1. C relied on D’s advice 🤝
2. Reasonable for C to rely on D’s advice: ⚖️
   consider special skill/knowledge of D & C; general context in which advice given; nature of advice; potential risk to C; availability of 2nd opinion
3. D knew or ought to have known C was relying on their advice 💡

Question 8

What is necessary to satisfy the voluntary assumption of responsibility test?

Answer 8

Main Question: was relationship equivalent to a contract?
1. D communicates advice to C🎙️
2. D knows purpose for C will use advice 💡
3. D knows/reasonably believes C will rely on advice w/o enquiry 🎙️🙅
4. C acted upon advice 🤕

Question 9

What is necessary to satisfy the special relationship of trust and confidence test?

Answer 9

1. Party seeking advice trusted the other to exercise care 👬🥰
2. Reasonable for them to do that⚖️
3. Other gave advice knowing/ought to have known C was rely on it💡
4. Special skill of the advisor🤓

Question 10

What is a case showing special relationship?

Answer 10

• Esso employee told prospective buyer that station would sell 200k gallons/year. C relied on advice which turned out to be wrong. 🛢️🤑
• estate agent relied on a lenders’ valuation report - given estate agent’s skill he should have known to get a proper survey - not liable 👩‍💼🏠📝
• 1st time buyer relied on lenders’ valuation report - reasonable for him to do so. 👶🏠📝
• A advised B on a second-hand car advising it had not been in accident and she need not get a second opinion - liable 🚗🗑️
• landscape gardener provided advice to friends but did not charge - liable 🧑‍🌾

Question 11

How do disclaimers work re negligent statements?
🙅

Answer 11

D has taken positive steps against assuming responsibility for their words
Must be reasonable to avoid a DoC:
- parties of equal bargaining power? ⚖️
- reasonably practical to get advice from another source? 🛸
- how difficult was task done by D? 😰
- practical consequences? 🤷‍♂️