Liability for Economic Duress Flashcards
If a claimant successfully proves a negligent act or omission for the defendant they will be able to claim damages for …
- Any physical injury suffered
- Any damage to their property
The claimant will be able to recover damages for only conseamential economic loss which arises directly from the physical damage
Claimant will not be able to claim for pure economic loss = not caused by physical injury or damage except the loss is a result of acting on a negligent misstatement establishing a ‘ special relationship ‘ as shown in the case of Hadley and Byrne v Heller 1964
Why is there no liability for pure economic loss?
- Economic loss is likely to be loss of profit which is more contract law
- Illustrated in the case of spartan sted v Martin and co 1973 and Weller v foot and mouth disease Research institute 1966.
What are the rules on claiming for a loss suffered due to a negligent misstatement?
- two party liability = A makes a statement to B,B suffers loss in relying on it
- Three party liability = A statement to B,B tells C,C suffers loss relying on it
what are the rules from Hedley Bryne case to claim for financial loss?
It has to be established that…
- The statement was made negligently
- There is a special relationship between the parties meaning the person giving advice owes a duty of care to the claimant
= the possession of a special skill or expertise on the part of the person giving advice eg a recognised qualification or someone knowledge in the field
= A reliance by the claimant on the advice whether there is sufficient proximity between parties as shown in Raga v Gray 2002
= the advice is communicated directly to the claimant and not through a third party such a newspaper
= The person giving for a purpose described at the time to the defendant
=There is no disclaimer to act as a defence ( a statement informing the claimant that the company does not accept responsibility for the advice given
