Special Duty Relationships

Question 1

What is Consequential Economic Loss?

Answer 1

• Medical costs, lost of wages, replacing property that has been permanently damaged

Question 2

What is Pure Economic Loss?

Answer 2

NOT FOLLOW because of damage caused by defendant e.g. investing into something of someone’s advice and beared the loss

Question 3

What are concerns for PEL?

Answer 3

• Indeterminate liability + Floodgates

Question 4

What is Pure Mental Harm?

Answer 4

• AKA ‘Nervous Shock’ = psychiatric or psychological injury
• Not a consequence e.g. SEE traumatic accident caused by defendant’s negligence

Question 5

What is Consequential Mental Harm?

Answer 5

• Mental harm that FOLLOWS as a consequence of personal or bodily injury

Question 6

What tests are considered to establish DOC for PMH?

Answer 6

• Common Law test (s.71 + s.72)
  OR
• Normal fortitude person test (s.72(1))

Question 7

Steps for establishing DOC for PMH?

Answer 7

1. Select one of the two tests
2. Salient Features
3. s.73 (only indirect victims) = Prevent indeterminate liability