Economic Loss P2

Question 1

what is economic loss

Answer 1

finnancial loss

Question 2

what elements of negligence are used for economic loss

Answer 2

a duty of care (do not apply robinson, apply economic loss)
breach of duty (only talk about reasonable man)
loss/damage (only factual causation)

Question 3

what are the two types of economic loss

Answer 3

consequental economic loss
pure economic loss

Question 4

what is consequental econonmic loss

Answer 4

c suffered money loss because he suffered a physical loss

Question 5

what is pure economic loss

Answer 5

c sufferes a finnancial loss (usually loss of profit) due to ds negligence

Question 6

which economic loss can you not claim for and why

Answer 6

pure economic loss
if only lost profit, claiment cannot claim for pure economic loss

Question 7

which claims were pure economic loss and consequental economic loss in Spartan steel v Martin (1973)

Answer 7

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

Question 8

why was there no claim on Weller V Foot & Mouth Disease Research Insitute (1965)

Answer 8

it was pure economic loss

Question 9

what is the exception to pure economic loss

Answer 9

negligent misstatement

Question 10

what is a negligent misstatement

Answer 10

when an inaccurate statement due to negligence of a person who made the statement

Question 11

what is the main case for negligent misstatement and what did it establish

Answer 11

Hedly Byrne v Heller (1964)
the 4 conditions need to be met for negligent misstatement

Question 12

what is the first element for establishing negligent misstatement

Answer 12

negligent misstatement
d must be negligent in providing advice which the c relies upon - written or verbal

Question 13

what is the second element for establishing negligent misstatement

Answer 13

special relationship
between c and d
based on 5 factors that must be met

Question 14

what is the first factor for special relationship and what was the case

Answer 14

D had a special skill/ is an expert that the C does not
Lennon v MPC (2004)

Question 15

what is the second factor for special relationship and what was the case

Answer 15

D takes responsibility of the advise and outcome from it
Chadhry v Probhaker (1998)
Patchett v Swimming pool Trade (2009)

Question 16

what is the third factor for special relationship and what was the case

Answer 16

C is a known user to the d
Caparo v Dickman (1990)
Goodwill v BPAS (1996)

Question 17

what was the fourth factor for special relationship and what was the case

Answer 17

statement is used for a known purpose and the D knows
Caparo v Dickman (1990)
Law society v KPMG (2000)

Question 18

what is the last factor for special relationship and what was the case

Answer 18

C reasonably relies on the statement
Smith v Eric Bush (1990)

Question 19

what is the third element of establishing negligent mistatement

Answer 19

D must be in breach of duty of care
(just by the standards or reasonable man)

Question 20

what is the last element of establishing negligent misstatement

Answer 20

The negligence must be a loss or injury ot the C
(factual causation only)