Negligent Misstatment and economic loss

Question 1

What is the first point of economic loss?

Answer 1

Basic rule is econ loss is not recoverable but there is an exception where it arises through negligent missatement made to the claiment.

Question 2

What is the second part of economic loss?

Answer 2

For duty of care, there needs to be a ‘special relationship.’ There are 3 criteria that need to be met to show SR

Question 3

What are the three criteria that need to be met in order for a special relationship to be identified in economic loss?

Answer 3

1. Special skill possessed by the defendant
2. Claimant relied on the special skill to their detriment
3. The reliance must have been reasonable which the courts have seen in terms of foreseeability. This is decided by looking at circumstances advice was given and proximity

Question 4

What is the third point aksed if a duty has been established in economic loss?

Answer 4

Breach - Ask if the def has behaved as a reasonable man.

Court will look at factors like foreseeability and likelihood of harm.

Question 5

What is the 4th point of economic loss after breach?

Answer 5

“The loss suffered must also be the type foreseeable from the breach “

Question 6

How many points are there in economic loss and neg misstatement?

Answer 6

4