Pure Economic Loss

Question 1

Pure economic loss

Answer 1

Financial loss not related to personal injury or damage to property

Question 2

Traditional view is that

Answer 2

There is no liability for loss arising out of negligent acts that are purely economic
(Spartan Steel V Martin and Co)

Question 3

Policy decision

Answer 3

Making a decision in the best interests of the public or organisation
(D Pride and Partners V Institute for Animal Health)

Question 4

Economic Loss caused by negligent misstatement

Answer 4

If loss is caused by a negligent misstatement (including advice) then negligent acts then liability can be imposed if

Question 5

If loss is caused by a negligent misstatement (including advice) then negligent acts then liability can be imposed if:

Answer 5

•The statement was made negligently
•There is a special relationship between the parties (Hedley Byrne V Heller)

Question 6

Special relationships (Caparo Dickman)

Answer 6

1•Possession of a special skill or expertise on the part of the person giving the advice
2•D knows it is highly likely C will rely on the advice
3•C relies on the advice and occurs financial loss
4•It was reasonable for C to rely on advice, reliance must be reasonable (Smith)

Question 7

Possession of a special skill or expertise on the part giving the advice

Answer 7

•D must be a specialist in the field which the advice concerns but they don’t have to be a professional advisor (Mutual Life V Evatt)

•Can be satisfied if advice is given in social situations (Chaundry)