unit 4

Question 1

In any claim to recover damages for psychiatric harm caused without physical impact, the nature of the psychiatric injury must satisfy two requirements. Identify those two requirements.

Answer 1

In any claim to recover damages for psychiatric harm caused without physical impact, the nature of the psychiatric injury must satisfy two requirements. The psychiatric injury must be:
Caused by an accident
Amount to a medically recognised illness.

Question 2

What is the definition of a primary victim?

Answer 2

A primary victim is a person who is in the actual area of danger or reasonably believes they were in danger.

Question 3

Explain the principles for duty of care for a primary victim. (Use 1 -2 sentences for your answer).

Answer 3

The principles for duty of care for a primary victim can be explained as follows:

Page v Smith established that for a primary victim, reasonable foreseeability of physical injury is sufficient to give rise to a duty of care.

Question 4

A person not falling within the definition of a primary victim is classed as a secondary victim. Not all secondary victims are owed a duty of care. List the requirements which a secondary victim must satisfy for a duty of care to be owed to them.

Answer 4

A person not falling within the definition of a primary victim is classed as a secondary victim. Not all secondary victims are owed a duty of care. The requirements which a secondary victim must satisfy for a duty of care to be owed to them are:

There must be reasonable foreseeability of psychiatric harm in a person of normal fortitude. However, reasonable foreseeability by itself is not sufficient. The claimant must also show:

A close relationship of love and affection with the person killed, injured or imperilled
Proximity in time and space to the accident or its immediate aftermath
Seeing or hearing the accident or its immediate aftermath with one’s own senses.

Question 5

What is the general rule in tort in relation to pure economic loss and what is its main exception?

Answer 5

The general rule in tort in relation to pure economic loss is: that pure economic loss is not recoverable in tort. The main exception to this rule is pure economic loss caused by negligent misstatement may be recoverable provided the necessary relationship between claimant and defendant can be established.

Question 6

Set out the definition of pure economic loss and list the three different circumstances which amount to pure economic loss.

Answer 6

Pure economic loss is defined as: “loss which is not linked to physical injury, death or property damage”. So, it includes:
Loss where there is no physical damage - failure to receive expected future profit or financial benefit.
Loss of value suffered where the claimant has acquired of an item of property which is defective.
Losses suffered by the claimant but resulting from damage to property which belongs to a third party.

Question 7

What is required for a duty of care to arise in respect of pure economic loss caused by a negligent misstatement: list the necessary features of the relationship between the claimant and the defendant. (Your answer should not exceed 200 words).

Answer 7

In cases of negligent misstatement Hedley Byrne v Heller established that a duty of care in respect of pure economic loss is owed if there is a special relationship between the defendant and the claimant, involving:

An assumption of responsibility by the defendant; and
Reasonable reliance by the claimant.
Caparo v Dickman established four factors which the claimant needs to show in order to establish the necessary special relationship:

The advisor knows:

the purpose for which the advice is required
that the advice will be communicated to the advisee
the advisee is likely to act on the advice without independent enquiry
The advisee does act on the advice