pure economic loss

Question 1

what is a case for physical damage to property or person?

Answer 1

Mulvaine v Joseph

Question 2

when is it only possible to claim for pure economic loss?

Answer 2

if there is no physical damage, if beyond the mere occurrence of loss

Question 3

what is a case for only being able to claim under E.L if there is no physical damage?

Answer 3

Weller & Co Ltd v Foot and Mouth disease research institute

Question 4

what is a case for explaining the difference between consequential and pure economic loss?

Answer 4

Spartan Steel v Martin

Question 5

what is consequential economic loss?

Answer 5

financial loss that is a direct result of personal injury or property damage caused in negligence

Question 6

what is pure economic loss?

Answer 6

monetary loss not caused by personal injury or damage to property

Question 7

Why can C usually not claim for economic loss?

Answer 7

1) floodgates (prevents courts being overwhelmed and limits liability of D)

2) better claimed from an insurance company as a matter of public policy

3) loss of profit should be covered by contract law and not negligence

Question 8

When can C claim for pure economic loss?

Answer 8

When there has been a negligent misstatement and a special relationship

Question 9

what is a case for special relationships?

Answer 9

Hedley Byrne v Heller

Question 10

what did the case of Caparo v Dickman establish?

Answer 10

the criteria for a special relationship

Question 11

what are the five criteria’s to prove a special relationship?

Answer 11

1) person giving statement has a special skill (Chaudhry v Prabhakar)

2) D knows C will rely on this statement (Caparo v Dickman)

3) C does rely on statement and suffers economic loss
(JEB Fasteners v Bloom)

4) reasonable for C to rely on statement

5) disclaimer