Exceptions of Pure Economic Loss- NEGLIGENT MISSTATEMENT COMPLETE Flashcards
What are the five exceptions of pure economic loss?
-Special skills/ expertise
-D voluntarily assumes responsibility for the statement
-known user relying on the statement.
-Known purpose
-Reasonable reliance.
What is the case for special skills/ expertise?
-Lennon V MPC.
-Chadbury V Prabhakar
What is the case for voluntarily assumed responsibility?
-Hedley Bryne V Heller.
What is the case for known user?
-Caparo V Dickman
What is the case for known purpose?
-Reeman V Debt transport
What is the case for reasonable reliance?
-Smith V Bush.
Lennon V MPC
F: police officer- advice from clerical worker about benefits.
O: Deemed to have a special skill.
Chadbury V Prabhakar
F: poor advice about which car to buy in a bar.
O:Even when in a social setting.
Hedley Bryne V Heller
The D must state to the C that they are prepared for the C to rely on the advice.
Caparo V Dickman
F: relied upon auditors report, intended only for company, bought shares.
O: The report was not meant for them but only the known user/
Reeman V Debt Transport
F: Relied on certificate of seaworthiness as value estimation, boat worth less.
O: the claim failed because the certificate was not for commercial valuation.
Smith V Bush
F: property buyers relied on surveyors report, loan from bank, overvaluation.
O: Reasonable to rely on surveyors report despite exclusion clauses (unfair contract terms).
