Economic Loss

Question 1

What are the two types of economic loss?

Answer 1

Pure and consequential

Question 2

What is pure economic loss?

Answer 2

Loss of money only

Question 3

What is consequential economic loss

Answer 3

Loss of money due to personal injury or property damage

Question 4

Spartan Steele v Martin applies to what?

Answer 4

Pure economic loss

Question 5

When is pure economic loss recoverable?

Answer 5

Only where there is a negligent misstatement and a special relationship

Question 6

What is the new duty of care/special relationship test for pure economic loss?

Answer 6

Specialist skill
Relied on to their detriment
Reasonable to rely on the statement
D knew purpose of advice
If advice was to be passed to a third party, D needs to be aware

Question 7

Mutual life v Evatt applies to what?

Answer 7

Specialist skill

Question 8

Yianni v Edwin Evans applies to what?

Answer 8

Relied on to their detriment

Question 9

James McNaughten Paper Group v Hicks applies to what?

Answer 9

Reasonable to rely on the statement

Question 10

Caparo v Dickman applies to what?

Answer 10

D knew purpose of advice or that it was to be passed to a third party

Question 11

After successfully applying the special relationship test, what further tests need to be applied?

Answer 11

Breach of duty and resulting damage