Pure Economic Loss

Question 1

Can claimants normally claim from pure economic loss? If not, what’s the exception?

Answer 1

No

If D makes a negligent misstatement

Question 2

What is the main case for pure economic loss?

Answer 2

Spartan steel v Martin & co ltd

Question 3

What is the main case for negligent misstatement

Answer 3

Hedley Byrne v heller and partners LTD

Question 4

What are the 5 key elements to establish a special skill or relationship?

Answer 4

1) the defendent must possess a special skill or expertise

2) d must voluntarily assume responsibility for his statements

3) D knows or ought to know the identity of the person or class of persons who will rely on his statement (known user)

4) d will only be liable for his statement if when making it he knows or ought to know the purpose for its use (known purpose)

5) C must show both that he relied on the defendants statement and that it was reasonable to do so.

Question 5

What is the case to show the defendant possessed a special skill or expertise?

Answer 5

Smith v Eric S Bush

Question 6

What is the case to show D must voluntarily assume responsibility for his statements

Answer 6

Lennon v MPC

Question 7

What is the case to show known user?

Answer 7

Caparo V dickman

Question 8

What is the case to show known purpose?

Answer 8

Caparo v dickman

Question 9

What is the case to show that C must show he relied on D statement and it’s reasonable to do so

Answer 9

Smith v Eric s bush

Question 10

You are done!

Answer 10

Hooray!