Economic Loss Flashcards
I
C may be able to claim for economic loss
D
Consequential economic loss is a loss of money which is a direct consequence of physical damage caused by the negligent acts . This loss is recoverable (spartan steel v Martin )
Pure economic loss is a loss which is not consequential of any physical injury or damage to the c. You cannot claim for this in tort (spartan steel v Martin )
A
Apply
Negligent misstatement
Loss caused by relying on a negligently made statement
Where the d makes a statement the c relies I. That statement and loses money as a result
I
The d may be liable for economic loss due to their negligently made statemtnt
D
(Hedley bryne v heller) set out the following conditions which if proved gives rise to a special relationship between the two parties (caparo v dickman)
E
Stage 1
Does the d possess any special skill relating to the advice given- this is based on the skill and judgment of the d and the reliance placed upon it by the c
Side rule - social situations- the general rule is that a defendant will not be liable for the statement made informally or in social situations. However in (chaudhry v prabhaker) it stated that advice given in a social situation might give rise to a duty of care provided they possess relevant expertise
A
Apply
E
Stage 2
Knows it is highly the d will rely on the advice- in (Mutual life v Evatt) it stated that a duty arises when the d is in the business of giving that type of advice or had professed to have skill or knowledge in the field in which the advice was given. The d must know the c will rely on it
A
Apply
E
Stage 3
Relies - the c does reply on the D’s advice and suffers financial loss due
A
Apply
E
Stage 4
It must be reasonable for c to rely on the advice- thr real test here is whether there is sufficient proximity between the parties for there to be reasonable reliance on the advice if there is proximity between them there is more reasonable contact I rely on their advice (caparo v dickmann)
Also if the d is in a position of authority/ responsibility when it is more reasonable to rely on their advice (white v jones)
A
Apply
Side rule
Voluntary assumption of a duty- this means that no one has asked you for the advice but you decide to give it away anyway . In Hedlry bryne v heller it stated if the maker if the statements voluntarily assumes responsibility regarding the making of the statement rather than staying silent this supports the existence of a duty of care
A
Apply
Conclusion
