cases

Question 1

Spartan Steel v Martin & Co

Answer 1

• loss of profit on damaged metal allowed but loss of profit whilst factory was closed is not as its pure economic loss
• fear that it would lead to the floodgates opening to many similar claims
• D cut electricity cable which caused power cut to be destroyed, can’t claim for loss of profit from steel that would’ve been processed your own factory closure due to the power cut as this did not occur as a result of physical damage to the claimant or property

Question 2

Weller & Co Ltd and Mouth Disease Research Institute

Answer 2

• Foot and mouth virus released, farmers could claim for loss of cattle as this is consequential economic loss but auctioneers could not claim for loss as this is pure economic loss

Question 3

Hedley Byrne v Heller

Answer 3

• D possesses skill in statement, D knows it is likely C will rely on this, C relies on this, Reasonable for C to rely on this
• To claim for pure economic loss resulting from negligent misstatement there must be a special relationship between the parties