Economic Loss P2 Flashcards
Comes under Tort of Negligence
what is economic loss
finnancial loss
what elements of negligence are used for economic loss
a duty of care (do not apply robinson, apply economic loss)
breach of duty (only talk about reasonable man)
loss/damage (only factual causation)
what are the two types of economic loss
consequental economic loss
pure economic loss
what is consequental econonmic loss
c suffered money loss because he suffered a physical loss
what is pure economic loss
c sufferes a finnancial loss (usually loss of profit) due to ds negligence
which economic loss can you not claim for and why
pure economic loss
if only lost profit, claiment cannot claim for pure economic loss
which claims were pure economic loss and consequental economic loss in Spartan steel v Martin (1973)
claims 1 and 2 were successful as damaged due to power cut. Claim 3 was pure as the metal was not physically damaged so no claim could be made
why was there no claim on Weller V Foot & Mouth Disease Research Insitute (1965)
it was pure economic loss
what is the exception to pure economic loss
negligent misstatement
what is a negligent misstatement
when an inaccurate statement due to negligence of a person who made the statement
what is the main case for negligent misstatement and what did it establish
Hedly Byrne v Heller (1964)
the 4 conditions need to be met for negligent misstatement
what is the first element for establishing negligent misstatement
negligent misstatement
d must be negligent in providing advice which the c relies upon - written or verbal
what is the second element for establishing negligent misstatement
special relationship
between c and d
based on 5 factors that must be met
what is the first factor for special relationship and what was the case
D had a special skill/ is an expert that the C does not
Lennon v MPC (2004)
what is the second factor for special relationship and what was the case
D takes responsibility of the advise and outcome from it
Chadhry v Probhaker (1998)
Patchett v Swimming pool Trade (2009)
what is the third factor for special relationship and what was the case
C is a known user to the d
Caparo v Dickman (1990)
Goodwill v BPAS (1996)
what was the fourth factor for special relationship and what was the case
statement is used for a known purpose and the D knows
Caparo v Dickman (1990)
Law society v KPMG (2000)
what is the last factor for special relationship and what was the case
C reasonably relies on the statement
Smith v Eric Bush (1990)
what is the third element of establishing negligent mistatement
D must be in breach of duty of care
(just by the standards or reasonable man)
what is the last element of establishing negligent misstatement
The negligence must be a loss or injury ot the C
(factual causation only)
