Please enable JavaScript.
Coggle requires JavaScript to display documents.
Negligence - Pure Economic Loss - Coggle Diagram
Negligence - Pure Economic Loss
Definition
Loss of profit
Not property damage nor personal injury
Expenditure
Illustration from Spartan Steel v Martin & Co.
Claimable: depreciation from spoiled melts and consequential loss of profits
Not claimable: lost contract yet to be made
For the loss from negligent misstatements to be recoverable: Hedley Bryne v Heller Partners test
VOLUNTARY assumption of responsibility
They statement giver must have had choice in the situation
Customs and Excise Commissioners v Barclays Bank
Reliance by the party receiving it
Caparo Industries v Dickman
SPECIAL relationship of proximity
Fiduciary relationships
Employer and employee
Spring v Guardian
Lawyers and client
Ross v Caunters
It must be in a business context
Exception: Chaudry v Prabhakar
The reliance was reasonable in that circumstance
Esso Petroleum v Mardon
Skill and expertise were being relied on
Lennon v Commissioner of the Metropolis
the statement giver had SPECIAL ACCESS to the information, despite them not being an expert in the area
James Mc Noughton v Hicks
It was not known that the draft financial statements will be used in a takeover