Economic Loss Flashcards
Can pure economic loss be claimed for?
No (Spartan Steel v Martin and Co. Ltd), unless it was caused by misstatement.
Consequential economic loss
When the claimant loses money due to physical damage arising from negligence.
Case for consequential economic loss
Network Rail Infrastructure v Conarkin Group
Case for claims under negligent misstatement
Hedley Byrne and Co. Ltd v Heller and Partners Ltd: If there is a special relationship between claimant and defendant, a duty of care will be found.
Negligent misstatement test
Defendant must possess some special skill relating to the statement
Defendant knows it is highly likely that the statement will be relied upon
Claimant uses the statement
It was reasonable to rely on the statement.
Defendant must possess some special skill
Chaudry v Prabhakar
D knows the statement is likely to be relied upon
Esso v Mardon
C relies on the statement
Smith v Eric Bush
It was reasonable to rely on the statement
Spring v Guardian Assurance
Spartan Steel v Martin and Co. Ltd
Pure Economic Loss cannot be claimed normally.
Network Rail Infrastructure v Conarkin Group
Case for consequential economic loss
Hedley Byrne and Co. Ltd v Heller and Partners Ltd
Case for claims under negligent misstatement: If there is a special relationship between claimant and defendant, a duty of care will be found.
Chaudry v Prabhakar
Defendant must possess some special skill
Esso v Mardon
D knows the statement is likely to be relied upon
Smith v Eric Bush
C relies on the statement
