Week 10 - Economic Loss

Question 1

Why are actions for losses attributable to pure economic loss not compensatable?

Answer 1

They are not linked with economic losses associated with physical damage/loss

Question 2

The general rule is that if there is not an aspect of physical damage in a claim…

Answer 2

It is rare the claim will be allowed

Question 3

What is one of the main exceptions to the general rule?

Answer 3

When a special relationship exists between the parties that elevates the defendant’s responsibility to the claimant

Question 4

Liability for pure economic loss will only be viable where…

Answer 4

A person has responsibility

Question 5

When can a duty of care be established?

Answer 5

If we have things like professional advice involved, as specialists may cause clients loss due to negligence

Question 6

What is the ‘Bolam test’ of professional advice?

Answer 6

Refers to whether the advisors were acting in accordance with a practice of competent respected professional opinion - (if a group of professionals would have done the same)

Question 7

When will a professional/adviser not be found guilty for economic loss?

Answer 7

Situations where a client is called upon to exercise themselves some discretion or autonomy in decision making (when provided with a range of options)

Question 8

What idea did Lord Denning form about negligent misstatements?

Answer 8

If you’re a professional and your information is going to be shared beyond the client you have a contract with, you are still liable if your advice is incorrect

Question 9

How could a party claim compensation for a negligent misstatement?

Answer 9

If there is a special relationship (usually contractual) and reasonable reliance, there will be a duty of care