Pure economic loss

Question 1

What is meant by economic loss?

Answer 1

A loss that is purely financial and not consequent to personal injury or property damage (only monetary loss) general rule - no claim

Spartan Steele v Martin & co.

(can only claim if there is a negligent misstatement from someone in a special relationship to the C)

Question 2

Two exceptions to claim for economic loss

Answer 2

• Negligent misstatement (an incorrect statement)

Hedley Byrne v heller partners

• Special relationship (a relationship akin to contract such as a professional/expert)

Must lead to financial loss

Question 3

What was the 3 part test for special relationship?

Answer 3

Caparo v Dickman
- D has or implied to have special skill/expertise

• D shares this information with the C/knows it will be shared with the C
• D knows it is being relied upon for a specific reason