Economic Loss Cases

Question 1

Caparo v Dickman 1990
(Economic Loss)

Answer 1

Shares were missvalued.

D had no knowledge of C’s existence so C couldn’t claim reliance on D’s statement

Question 2

Chaudhry v Prabhakar 1989
(Economic Loss)

Answer 2

C helped by D when purchasing a car. Car was unroadworthy. Caused C economic loss.

C relief on D’s advice on basis that D was knowledgeable

Question 3

JEB Fasteners v Bloom 1983
(Economic Loss)

Answer 3

C got company to use directors

C knew financial state of company so could not claim reliance