Pure economic loss Flashcards
What is the definition of pure economic loss?
No damage to C’s property or injury
What are the categories of pure economic loss?
- Economic loss not flowing from damage
- Loss arising from damage to property of another
- Defective items
What is the general rule for pure economic loss?
No duty of care owed
What are the exceptions to the general rule for pure economic loss?
- Pure economic loss caused by negligent statement
- wills
- references
What is the test for whether there is a duty of care owed for pure economic loss arising as a result of a negligent statement?
Reasonable reliance; and/or
Assumption of responsibility; and/or
Special relationship of trust and confidence.
What is the test for whether there is a duty of care owed for pure economic loss where there is reasonable reliance on a neligent statement?
- Relied on D’s advice
- Reasonable to rely on D’s advice
- D knew/ought to know C was relying on advice
What factors are considered when assessing whether it was reaosnable for a claimant to rely on the defendant’s advice?
- Special skill/knowledge of D
- Special skill/knowledge of C
- General context in which advice given
What is the test for whether there is assumption of responsibility for pure economic loss arising as a result of a negligent statement?
- D communicates advice to C
- D knows purpose of advice
- D knows/reasonably believes C will rely on advice
- C acted upon advice to their detriment
What is the test for a special relationship of trust for pure economic loss arising as a result of a negligent statement?
- Party seeking advice trusted other to such degree of care as required
- Reasonable to do that
- Knew/ought to know enquirer was relying on advice
How do the courts assess whether a disclaimer is valid to protect against a duty of care in relation to pure economic loss?
a) Were parties of equal bargaining power?
b) Would it be reasonably practical to obtain second opinion?
c) How difficult was D’s task?
d) What are practical consequences?
