Pure Economic Loss Flashcards
How is Pure Economic Loss caused?
Negligent Acts
Negligent Misstatement
If Pure Economic Loss is successful proven what can victim claim for?
Physical injury suffered
Damage to their property
Is there liability for Pure Economic Loss?
No
Cases for loss caused by negligent for Pure Economic Loss?
Sparton Steel v Martin and Co’s
Weller v Foot and Mouth Disease Research Institute
Point of law in Sparton Steel v Martin and Co’s for Pure Economic Loss?
Loss of profit while the factory was out of action, not allowed
Point of law in Weller v Foot and Mouth Disease Research Institute for Pure Economic Loss?
Loss of income and profit was pure economic loss and not recoverable under tort law
Types of Party Liability under Pure Economic Loss?
Two-Party Liability
Three-Party Liability
Definition of Two-Party Liability under Pure Economic Loss?
When A gives advice or makes a statement to B and B suffers loss in relying on it
Definition of Three-Party Liability under Pure Economic Loss?
Where A makes a statement to B and B communicates it to C, then C suffers a loss from it
Cases for loss by negligent misstatement in Pure Economic Loss?
Hedley Byrne v Heller and Partners
Caparo Industries v Dickman
Chaudhry v Probhakar
Point of law in Hedley Byrne v Heller and Partners for Pure Economic Loss?
Statement was made negligently
“special relationship” between parties
Point of law in Caparo Industries v Dickman for Pure Economic Loss?
a special relationship
skill of knowledge of the person giving advice
reliance on advice
knowledge of reliance
communication
no disclaimer
Point of law in Chaudhry v Probhakar for Pure Economic Loss?
Negligent misstatement can be claimed even if the advice is given in a social situation
