Pure Economic Loss Flashcards
What is economic loss?
Any loss that leaves C financially less well off
Economic loss can encompass various types of financial damages.
Is consequential economic loss recoverable?
Yes, if C can satisfy the normal rules on causation and remoteness.
Can pure economic loss caused by a negligent act be claimed?
No, as established in SPARTAN STEEL/MURPHY BRENTWOOD.
Under what circumstances can C claim for pure economic loss?
For negligent misstatements, as established in HEDLEY BYRNE V HELLER.
What must D owe to C in the context of negligent statements?
A duty of care when there is a special relationship between them.
What are the four things that must be established for a special relationship according to CAPARO INDUSTRIES V DICKMAN?
- D must have a special skill or expertise
- D must voluntarily assume responsibility for giving advice
- D must know C would rely on the advice
- C has relied on the advice to their detriment.
What does it mean for D to have a special skill or expertise?
D holds a qualification or presents themselves as having special skill/knowledge in the field of advice given.
Do social relationships typically give rise to a duty of care?
No, unless the person giving advice has some expertise, as seen in CHAUDHRY V PRABHAKER.
What does it mean for D to voluntarily assume responsibility for giving advice?
D has not instructed C to seek a second opinion.
What indicates that it is reasonable for C to rely on D’s advice?
If reliance is foreseeable, it is considered reasonable.
Is it reasonable for C to rely on advice if the group of potential Cs is too large?
No, it will not be reasonable, as established in GOODWILL.
What must C demonstrate regarding reliance on advice?
C has relied on the advice to their detriment.
