Economic loss Flashcards
What is economic loss ?
Financial loss from negligence, or loss from negligence misstatement
Many torts have negligence as their basis, as does economic loss, what else must occur for a claim of economic loss ?
A negligent act must have caused harm to the victim in this case, financial impact
In a claim of economic loss what might the claimant be able to claim compensation for ?
To repair or replace property as a result of negligence
What happened in the case of Spartan steel v Martin & co (1937) ?
D’s were responsible for for digging up a roadside, they were negligent when they hit a power supply connected to a factory causing loss in profits while non operational
What is the case of Spartan steel v Martin & co (1937) an example of ?
Pure economic loss
What is negligent misstatement ?
Where the claimant relies on advice from the defendant and suffers economic loss as a result
What is two party liability ?
A makes a statement to B –> B relies on that statement –> B suffers a loss as a result
What is three party liability ?
A makes a statement to B –> B Relays that statement to C –> C relies on that statement and suffers financial loss
Can the claimant claim for 3 party liability ?
No
What is the leading case for negligent misstatement ?
Hedley Byrne V Heller
What are the requirements set out in Hedley Byrne V Heller ?
Special skill or expertise
Reliance
Communication
Knowledge of purpose
No disclaimer
