Negligent misstatement

Question 1

What is pure economic loss?

Answer 1

A pure economic loss is a loss that is purely financial and not consequent to personal injury or property damage

Question 2

Is pure economic loss actionable?

Answer 2

The general principle is that pure economic loss is not actionable, a claimant cannot claim for pure economic loss due to the negligence of another, unless it is negligent misstatement

Question 3

What is a consequential economic loss?

Answer 3

An economic loss that is the consequence of physical damage

Question 4

What was actionable in Spartan Steel v Martin Co Contractors Ltd?

Answer 4

Damage to the melts and loss of profits on the damaged melts was actionable, but the loss of profits whilst the factory was closed was not actionable

Question 5

In which case was there an effective disclaimer?

Answer 5

Hedley Byrne v Heller and Partners

Question 6

What are the two requirements for a negligent misstatement claim?

Answer 6

1) a negligent statement
2) a special relationship