Pure Economic Loss

Question 1

What can a claimant claim for under pure economic loss?

Answer 1

Negligent misstatement that has caused the claimant financial loss

Question 2

What can a claimant NOT claim for under pure economic loss

Answer 2

Negligent act that has caused a loss of profit or loss of income
(Spartan steel) and (Weller v foot and mouth disease)

Question 3

What needs to be established in order to claim for negligent misstatement and what case establishes this?

Answer 3

HEDLEY BYRNE V KELLER
1. Special relationship
2. Negligent misstatement

Question 4

What is the case for establishing a special relationship?

Answer 4

DONOGHUE V STEVENSON
- Owing a duty of care

Question 5

What are the elements of establishing a special relationship?

Answer 5

1. Possess special skill or expertise
2. Knowing the claimant is relying on the advice given and is going to use and act upon it
3. Advice must be communicated directly to the claimant, not a third party
4. Person giving advice knows its for a purpose
5. There was no disclaimer given

Question 6

What is the case for social situations and a duty of care?

Answer 6

CHAUDHRY V PRABHAKAR
- Duty of care still owed in social situations