Torts Flashcards
What is pure economic loss?
Pure economic loss is:
1. Damage to property which doesn’t belong to the claimant
2. The cost of damage suffered by a defective product acquired by claimant
3. financial loss that does not flow from damage to the claimant’s person or property.
Is there a duty of care for pure economic loss?
The general rule is no duty of care is owed for pure economic loss, except where there is a special relationship between the defendant and claimant.
What are the conditions for a special relationship to give rise to a duty of care for economic loss?
The advice is required for a purpose made known to the defendant.
The defendant knows the advice will be communicated and relied on.
The claimant relies on the information.
It is reasonable for the claimant to do so.
What does trespass to goods require?
It requires intentional interference with the claimant’s goods.
Who bears the burden of proving breach of duty in tort law?
The claimant bears the burden of proving breach of duty, not the defendant.
What type of liability does the Consumer Protection Act 1987 impose?
Liability under the CPA 1987 is strict but does not apply to damage to business property caused by defective products.
Can contributory negligence arise from actions other than the claimant’s own?
No, only the claimant’s own actions can give rise to contributory negligence.
Who can recover bereavement damages?
Bereavement damages are recoverable only by the deceased’s spouse, civil partner, cohabitant of over 2 years, or parents if the deceased was under 18 and unmarried. Children cannot recover bereavement damages.
What is the ‘egg shell skull’ rule?
If the claimant has a pre-existing condition that makes harm more severe, the claimant can still recover for the full damage caused by the defendant’s negligence.
Is liability for breach of statutory duty always strict?
No, the standard of liability depends on the wording of the particular statute.
When is nuisance actionable?
A nuisance must be unreasonable. For physical damage (e.g., smoke), the industrial character of the neighborhood is irrelevant. For amenity damage (e.g., smell), it may be relevant.
What duty does a manufacturer owe in negligence?
The manufacturer owes a duty of care to the consumer if the product is circulated as intended with no expectation of intermediate examination.
What conditions must be met for a duty under the Occupiers’ Liability Act 1984?
The occupier is aware (or ought to be) of the danger.
The occupier is aware (or ought to be) that trespassers might come near the danger.
The danger is one against which the occupier might reasonably offer protection.
Is damage to the defective product itself recoverable under negligence?
No, damage to the defective product itself is pure economic loss and is not recoverable under negligence.
Does the Consumer Protection Act 1987 cover damage to defective products?
No, the CPA does not cover damage to the defective product itself.
What are the damage coverage differences for defective products between SGA 1979, Negligence and CPA 1987?
- SGA - Cost of defective good can be recovered
- Negligence - Pure economic harm, defective good cannot be recovered
- CPA - Pure economic harm, defective good cannot be recovered, and also in contrary to negligence damages for privately used property should exceed 275E to be recovarable (business property is not recoverable at all)
What factors are taken into account when assessing standard of care?
- The risk created by defendant’s actions
- The practicability of taking precautions against the risk involved
What is an exception of the general rule that a person is not liable for the torts of their independent contractor?
An occupier of land is liable for a nuisance created by an independent contractor where the work for which the contractor was engaged carried a special danger of creating a nuisance.
When is there an exception and a duty of care is owed in connection with Pure Economic Loss?
An exception applies for pure economic loss caused by a negligent misstatement, where there is an assumption of responsibility by one party and reasonable reliance by the other, provided that the advice required is for a purpose made known to the defendant
