Negligent misstatement Flashcards
(12 cards)
Can you claim for pure economic loss due to a negligent act or omission?
No- As shows in Spartan Steel
When can you claim for economic loss?
If it is due to a negligent mistatement- Hedley Byrne
What is the first question to ask in negligent misstatement cases?
Has there been a pure economic loss? (Loss of profit or value)
What is the second question to ask in negligent misstatement claims?
Has there been a negligent misstatement?
What is a negligent misstatement?
Inaccurate statement made honestly but carelessly, usually in the form of advice.
What is the third question to ask in negligent misstatement cases?
Special relationship between parties?
What factors show a special relationship in negligent misstatement?
Specialist skills (qualifications, knowledge) or even a social relationship (Chaudry)
The advice must be in the specific area. What is the case?
Mutual Life V everett
What is a reasonable reliance on the advice?
it must be foreseeable that the advice will be relied upon, as well as actually relied upon. Caparo v Dickman.
Can the duty extend to a third party?
Yes. If there is knowledge of the purpose of advice given and proximity.
If a special relationship is proved, what else must the claimant show?
Breach of duty, plus factual/legal causation
What test is used to determine breach
The Reasonable man test
