Purely economic loss

Question 1

Why limit claims made on the basis of pure economic loss?

Answer 1

There would be no reasonable limit to a defendant’s liability and courts would be overwhelmed.

Question 2

Ultramares v touche

Answer 2

a fear of an indeterminate number of claims by an indeterminate number of parties in indeterminate amounts of money for an indeterminate amount of time.

Question 3

Hedley byrne v Heller

Answer 3

Pure economic loss could be recovered in negligent misstatements.