Pure Economic Loss

Question 1

What are types of economic loss that cannot be claimed for in tort?

Answer 1

1. Loss not flowing from damage to person or property (i.e making a bad investment, missing an opportunity or lost inheritance)
2. Loss from property belonging to another
3. Defective items

Question 2

In what circumstances is pure economic loss recoverable in tort?

Answer 2

1. Wills - solicitor owes beneficiaries of a will a duty of care.
2. References - duty of care to provide an accurate reference for a past employee.
3. Negligent Misstatements

Question 3

What are negligent misstatements?

Answer 3

1. C reasonably relies on Ds advice and D knew or ought to have known this.
2. Assumption of responsibility = D communicated advice to C, knew purpose of the advice + reliance + detriment.
3. C reasonably trusted D to exercise care and D ought to have known of reliance.

Question 4

What is the test for causation in relation to pure economic loss?

Answer 4

Loss of Chance = real and substantial chance that the opportunity would have been achieved.