Economic Loss

Front 1

Why is economic loss treated differently?

Back 1

Tort law does not want to be used as a bank and it would open the floodgates.

Front 2

What are the two types of economic loss?

Back 2

Consequential economic loss: financial loss suffered as a result of another harm.

Pure economic loss: financial loss that is not the consequence of another home.

Front 3

What is the difference between pecuniary and non-pecuniary economic loss?

Back 3

Pecuniary economic loss is losses that can be accurately calculated based on cost assessment.

Non-pecuniary economic loss is money awarded for losses where the original harm is not financial.

Front 4

What is relational economic loss?

Back 4

A damages the property of B which causes C to lose money.

Front 5

Is there a right of action for relational economic loss and what case shows this?

Back 5

No right of action.

Cattle.

Front 6

What case shows that there is generally no claim for economic loss?

Back 6

Cattle.

Front 7

What are the reasons for the strict rules on pure economic loss? (7)

Back 7

It is less serious than physical loss.

A single act of negligence can cause pure economic loss to numerous people.

Contract law should be used instead.

Negligence should not step in to save people from silly contracts.

It encourages the self-help for businesses.

Floodgates.

The court should not be used as a bank.

Front 8

What case shows that a duty of care is owed for consequential economic loss?

Back 8

Spartan Steel.

Front 9

What are the three types of pure economic loss?

Back 9

Economic loss caused by acquiring defective property.

Economic loss caused by damage to the property of a third party.

Economic loss caused by reliance on a negligent misstatement.

Front 10

What is the general rule about pure economic loss caused by acquiring defective property and what case supports this?

Back 10

No duty of care owed no action available.

There is no damage to the people or property other than the defective property acquired.

Murphy.

Front 11

What is the general rule about pure economic loss caused by damage to the property of a third party and what case supports this?

Back 11

No duty of care owed to those who have no possessory or right to the property.

Spartan Steel.

Front 12

Why is the generally no action for pure economic loss caused by damage to the property of a third party?

Back 12

Due to the lack of a duty of care.

Front 13

What could the people in Spartan Steel claim for?

Back 13

Make a claim for the damage and the consequential lost profits but they could not claim for the possible lost profits from being unable to work that day.

Front 14

What case says that buyers should take better steps in contract law to protect themselves from damage to the property of a third party?

Back 14

Leigh.

Front 15

What is the general rule about pure economic loss caused by reliance on a negligent misstatement and what case supports this?

Back 15

Generally no duty owed.

Spartan Steel.

Front 16

What is the general rule that there is no duty owed when pure economic loss is caused by reliance on a negligent misstatement subject to?

Back 16

The extended Hedley Byrne principle.

Front 17

What are the four rules of the Hedley Byrne principle?

Back 17

There must be a special relationship between claimant and defendant.

There must be a voluntary assumption of responsibility by the defendant.

There must be a statement made by the defendant.

There must be reasonable reliance on the statement by the claimant.

Front 18

What case extended the Hedley Byrne principle to apply to services as well as advice or information?

Back 18

Henderson.

Front 19

What creates a special relationship between claimant and defendant?

Back 19

Giving opinion provides proximity so duty of care is imposed.

Front 20

In giving advice or opinion when is a duty of care imposed on the defendants?

Give two cases to support this.

Back 20

Only upon defendants who have special knowledge on the area of the.

Esso and Evatt.

Front 21

What does the case of Spring say about a special relationship?

Back 21

Special relationship will exist between an employer and an employee who wants a job reference.

Front 22

How is the voluntary assumption of responsibility determined?

Back 22

By things said or done by the defendant.

Front 23

What case shows no assumption of responsibility and why?

Back 23

Barclays Bank.

There was no choice but to accept.

Front 24

What case shows a voluntary assumption of responsibility being imposed?

Back 24

Henderson.

Front 25

What does Hedley Byrne say about disclaimers?

Back 25

Disclaimers will normally work.

Front 26

What case contracts Eso and allows advice given on a social basis to owe a duty of care?

Back 26

Chaudhry.

Front 27

In what case did a disclaimer not work and why?

Back 27

Smith.

The disclaimer was invalid under the Unfair Contract Terms Act as he was a professional who was paid for his services.

Front 28

How does the case of Scullion distinguish between individuals and companies buying property?

Back 28

Individuals buying property should be protected but commercial companies are expected to protect themselves this way surveyors are not open to large losses.

Front 29

What does Spring say about the statement?

Back 29

The claimant can be the subject of a statement and not the recipient of it.

Front 30

What two things must be considered about the statement?

Back 30

The purpose of the statement.

The knowledge the defendant had at the time of making the statement.

Front 31

What case outlines that if the claimants could be a potentially large group the claim is unlikely to succeed?

Back 31

Caparo.

Front 32

What does Caparo say about when is easy to find duty for the statement?

Back 32

It is easy to find duty when the statement is made to advise one person.

When is statement is something other than advice it is harder.

Front 33

What case is the exception to C not being able to claim their benefit for the contract between A and B and why?

Back 33

White.

C can claim if B can no longer claim for themselves?

Front 34

Is the test regarding if the reliance was reasonable in the circumstances subjective or objective?

Back 34

Objective.

Front 35

What case shows the importance of looking at the purpose of the statement when determining reliance?

Back 35

Caparo.

The plaintiffs relied on the statement in a different way than the purpose it was made for.

Front 36

What is the case of Barclays Bank outline about reliance?

Back 36

If A had not relied on B he would have acted differently, which he did not.

Front 37

What does the case of Henderson outline about reliance?

Back 37

Reliance must be proved for information or advice but for services that the claimant has requested reliance will be assumed.

Front 38

What case suggests that the assumption of responsibility can be imposed?

Back 38

Spring.

Front 39

What case outlines that we must also look if the loss is foreseeable and if it is fair just and reasonable to make the defendant liable?

Back 39

Barclays Bank.