Tort - Negligence Rules for Economic Loss and Psychiatric Harm

Question 1

Economic Loss

Answer 1

1. Consequential economic loss
2. Pure economic loss; must be a negligent statement arising from special relationship

Question 2

Special Relationship

Answer 2

1. D has specialist knowledge
2. D is aware C will rely on information
3. Reasonable for C to do so

Also applies to the provision of services (e.g. solicitor drafting a will)

Question 3

Psychiatric Harm

Answer 3

1. Consequential psychiatric harm
2. Pure psychiatric harm

Question 4

Primary Victim

Answer 4

Endangered by D’s conduct

Question 5

Secondary Victim

Answer 5

Suffers psychiatric harm from witnessing injury to another

Four requirements:

1. Psychiatric harm reasonably forseeable
2. Close relationship to injured person
3. Present at accident or immediate aftermath
4. Directly witnessed events with own senses

Question 6

Pure Economic Loss

Answer 6

1. Damage to property not belonging to C
2. Cost of damage suffered to a defective product
3. Financial loss which does not flow from the damage to C’s person or property