PEL and PPH

Question 1

GR PEL and PPH

Answer 1

No duty to not to cause PEL or PPH
(e.g. damage for property belonging to 3rd party / bad investment / missed contract / defective item

Question 2

Negligent mistatement rule

Answer 2

C can recover PEL caused by a negligent mistatement where there is a special realtionship between C and D.

Special relationship where reasonable reliance and assumption of responsibility

1. Reasonable reliance
   - C relied on D’s advice
   - Reasonable for C to rely on D’s advice
   - D knew C would rely on their advice
2. Assumption of responsibility
   - D communicated advice to C or class
   - D knew C would not independently verify the advice
   - D knew purpose C would use advice
   - C relied on advice to detriment

Question 3

When can D exclude liability for negligent misstatement?

Answer 3

D can exclude liability if there was a valid exclusion notice. Notice is valid if:

1. D took reasonabel steps to ensure C was aware of notice before tort
2. Notice covers loss suffered
3. Notice is reasonable / fair considering bargaining power, availability of advice, complexity, ability of parties to bare losses

Question 4

PPH exception - primary and secondary victims

Answer 4

D owes a duty of care not to cause PPH if:
1. C suffered medically recognised condition or shock induced physical condition; and
2. satisfies relevant victim test.

Primary victim (in area of danger): D owes duty if physical injury was foreseeable

Secondary victim (witness or fears for antoher): D owes a duty if:
1. risk of PPH foreseeable
2. close tie and affection (parent, spouse otherwise prove)
3. Present at scene or immediate aftermath
4. sees or hears with own senses

Question 5

When will an employer owe an employee a duty for stress at work

Answer 5

PPH must have been reasonably foreseeable considering:
- nature and extent of work: more than normal?
- Signs of stress: employer must be aware of indications
- size of business / availability of resources