Negligence: PEL

Question 1

Definition

Answer 1

• Pure economic loss is economical loss which is not consequential upon physical damage to person or property. Electochrome v Welsh Plastics

Question 2

REASONABLE FORESEEABILITY

Answer 2

Mere reasonable foreseeability of the loss is not sufficient. Hedley Byrne v Heller

Question 3

SCOPE OF DUTY

Answer 3

• The scope of the duty is to take reasonable care in providing the information and not to mislead a recipient in the giving of advice or the expression of opinion. MLAC v Evatt
• If the giver of the advice gains additional information rendering an original representation no longer reasonable, there is a duty to correct the position based on knowledge of the changed circumstances. Richard Ellis v Mullins Investments
• Silence may amount to a failure to provide or re-correct advice. YE Falls investments v NSW

Question 4

LOSS SUFFERED

Answer 4

• Pure economic loss is economical loss which is not consequential upon physical damage to person or property. Electochrome v Welsh Plastics

Question 5

DUTY OF CARE

Answer 5

Reasonable foreseeability is not enough to establish a duty Hedley Byrne v Heller
Only a special relationship will give rise to a duty of care. Mutual Life & Citizens Assurance Co v Evatt

Question 6

SPECIAL RELATIONSHIP

Answer 6

• A special relationship for the establishment of a duty of care requires an assumption of responsibility by the speaker and reasonable reliance by the recipient upon the misrepresentation. Mutual Life & Citizens Assurance Co v Evatt
• The existence of a fiduciary or contractual relationship is NOT a requirement Mutual Life & Citizens Assurance Co v Evatt
• Relationship between Barrister and client is NOT recognised as a special relationship due to limited immunity. Gianarelli v Wraith