economic loss

Question 1

consequential economic loss

Answer 1

loss in money which is a direct consequence of physical damage caused by negligent acts. Loss is recoverable (Spartan Steel v Martin)

Question 2

Pure economic loss

Answer 2

loss which is not consequent on any physical injury or damage to the claimant. Cannot claim for in tort (Spartan Steel v Martin)

Question 3

negligent misstatement definition

Answer 3

where the D makes a statement, the C relies on this statement and loses money as a result HEDLEY BYRNE v HELLER set out the following conditions which if proved give rise to a special relationship between the two parties (Caparo v Dickman)

Question 4

stage 1

Answer 4

does the D posses any special skill relating to the advice given this is based upon the skill and judgement of the D and the reliance placed upon it

Question 5

stage 1 side rule: social situations

Answer 5

Chaudhry v Prabhaker- advice given in social situations may give rise to a duty of care provided the D possesses the relevant expertise

Question 6

stage 2

Answer 6

the D knows it is highly likely the D will rely on the advice (MUTUAL LIFE v EVATT) duty arises when D in business of giving that type of advice and knows the C will rely on it

Question 7

stage 3

Answer 7

the C relies on the advice and suffers financial loss

Question 8

stage 4

Answer 8

must be reasonable for the C to rely on the advice (CAPARO v DICKMAN) if there is proximity between the parties then it is more reasonable to rely// or if D is in a position of authority (WHITE v JONES)

Question 9

stage 4 side rule: voluntary assumption of duty

Answer 9

supports existence of duty of care (HEDLEY BYRNE v HELLER)