pure economic loss

Question 1

what is pure economic loss?

Answer 1

economic loss that arises where there has been no damage to the C’s property or injury to their person

Question 2

what is consequential economic loss?

Answer 2

economic loss consequent on physical damage eg, lost salary because of a broken leg

Question 3

what is psychiatric damage?

Answer 3

where claimant suffers psychiatric damage

Question 4

as a general rule is pure economic loss recoverable?

Answer 4

no - it is not recoverable

Question 5

if a claimant suffers economic loss as a result of damage to property (not belonging to them) can they claim for pure economic loss?

Answer 5

yes they can as the damage to property doesnt belong to them as they have no proprietary interest in it

Question 6

can a person claim for a defective item in tort under pure economic loss?

Answer 6

no it is not possible

Question 7

what are the 3 exceptions to the general rule that cant claim for pure economic loss?

Answer 7

1. pure economic loss caused by negligent statements
2. wills
3. references

Question 8

how does the exception of ‘wills’ work for pure economic loss?

Answer 8

solicitor owes beneficiaries duty - therefore, if fail to draft will properly then causes pure economic loss to the beneficiaries

Question 9

how does the exception of ‘references’ work for pure economic loss?

Answer 9

old employer giving a reference for employee for their new job - owe duty of care by providing an accurate reference