Negligence Economic Loss

Question 1

What is Pure economic loss

Answer 1

Defined as an economic loss that doesn’t flow from the damage to the claimants property or person. “Damage to the pocket”

Question 2

Pure Economic loss not recoverable

Answer 2

Liability in an indeterminate amount for indeterminate time is unwise unless covered by a contract or a relationship a kin to a contract

Question 3

What’s the definition of Economic loss?

Answer 3

defined as loss as a direct result of damage to person or property (loss of wages)

Question 4

General Rule for economic loss

Answer 4

Economic loss is recoverable Pure economic loss is not

Question 5

General Rule - Construction does duty extend to subsequent owners

Answer 5

Subsequent owner rarely have a contractual relationship with the original builder

Question 6

can a claim be made for consequential economic loss if goods are defective

Answer 6

Must be some proximity between the defendants - if no proximity pure economic loss is unrecoverable

Question 7

Can damages be claimed when items are Damaged in Transit

Answer 7

Must be the owner or in possession at the time of damage if no classed as pure economic loss

Question 8

Pure economic loss exceptions

Answer 8

Pure economic loss is unrecoverable except if there is a contact or a relationship akin to a contract and then only if there as been an assumption of duty for economic interests or a negligent misstatement

Question 9

Historic Negligent misstatement/assumption of duty

Answer 9

Historically recovery was only allowed for international/fraudulent misstatement which caused physical damage.

Question 10

How did negligent misstatement/assumption of duty change

Answer 10

Introduction of Misrepresentation Act 1967 S2(1)

Question 11

What constitutes a special relationship-misstatement

Answer 11

did the claimants rely on the words/advice by the defendants and di the defendants know the claimants were relying on the words/advice

Question 12

Indicators of proximity - missstatement

Answer 12

Purpose of making the statement
The purpose of communicating the statement
Balance of power between the parties
number of people relying on the advice
Knowledge of the person giving the information/advice
Claimants access to other sources of information

Question 13

Assumption of duty for economic position

Answer 13

has a duty of care for the economic position been assumed

Question 14

Assumption of duty for economic position - Test

Answer 14

Did the defendant assume responsibility
Caparo test
development of novel categories