Economic Loss via Negligent Misstatement

Question 1

What are the two types of economic loss

Answer 1

1. Pure economic loss
2. Consequential economic loss

Question 2

Explain pure economic loss

Answer 2

No accompanying physical loss

Question 3

Explain consequential economic loss

Answer 3

a physical loss such as property damage

Question 4

When can C claim for pure economic loss

Answer 4

when it occurs via a negligent misstatement

Question 5

Case that established what a negligent misstatement is

Answer 5

Hedley Byrne v Heller

Question 6

First element

Answer 6

Does D possess a skill or expertise, it is extended to people who are knowledgeable in a social setting.

Question 7

Second Element

Answer 7

Does D voluntarily assumed responsibility for his statement, did he issue a disclaimer?

Question 8

Third Element

Answer 8

Did he know the identity of those who would rely on his statement and the purpose.

Question 9

Final element

Answer 9

Did C rely on the negligent misstatement (Smith v Eric Bush)

Question 10

Establishing breach

Answer 10

Why was the statement wrong and compare D to the reasonable X (same field of work etc)

2. The duty must cause the economic loss

Question 11

2 Defences?

Answer 11

Contributory Negligence
Consent

Question 12

2 elements for contributory negligence

Answer 12

1. Did C’s actions make the damages worse
2. Did C fall below the standards of the reasonable man

Question 13

3 elements for consent

Answer 13

1. Was C fully aware of the risk
2. Did C fully consent
3. Did C waive any claim to damages express or impliedly

Question 14

Remedy?

Answer 14

Special and general damages - special is measurable