Negligence- Pure Economic Loss

Question 1

What is purely economic loss

Answer 1

Economic/financial loss not caused by personal injury/property damage

Question 2

What 3 cases are used for pure economic loss

Answer 2

Spartan steel v martin
Hedley Byrne v heller
Caparo v dickman

Question 3

What does the case of spartan steel v martin say about PEL

Answer 3

There is No duty of care in relation to PEL resulting from negligent acts

Question 4

What does the case of hedley Byrne v heller say about PEL

Answer 4

Only establish liability in PEL for negligence when there’s a negligent misstatement made by the D in the course of a special relationship which caused the PEL

Question 5

Whats the 1st aspect that needs to be proven for special relationship to be proved as stated in the case of caparo v dickman

Answer 5

The Person giving the advice possesses/purports to posses a special skill/certain expertise

Question 6

Whats the second element that needs to be proven for special relationships

Answer 6

The person giving the advice knows its being required for the purpose described at the time to the C, and will be relied upon

Question 7

Whats the 3rd element that needs to be proven for special relationships

Answer 7

C does reasonably rely upon statement