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6 Cards in this Set

  • Front
  • Back

How can a claim for pure economic loss be made?

Arising out of a negligently made statement (a misstatement not a negligent act)


Murphy V Brentwood District Council


Hedley Byrne V Heller Partners z

How are claims made?

Claims for pure economic loss arising from negligent misstatements can be made following Hedley Byrne principles

What must there be for a claim?

A special relationship-


only covers advice given in a business context (buying/ selling, profit making (Esso Petroleum Co ltd V Mardon)


Purely social relationships should not normally give rise to a duty of care


However Chaudry V Prabhaker where there was a special relationship because the defendant was an expert

It must then be established i the defendant has voluntarily assumed responsibility for the advice he gives- explain

A claim is generally only available when the party giving the advice is a specialist in the field of the advice concerned


A specialist who chooses to give advice will be considered to have voluntarily assumed responsibility for it (Mutual life V Evatt)


A defendant who’s isn’t a specialist but holds himself out to be a specialist has also voluntarily assumed responsibility (Dean V Allin and Watts)


If a specialist gives advice but warns it should not be relied upon may escape liability through a disclaimer (Hedley Byrne V Heller)

What will the claimant need to prove?

That not only did they rely on the advice but that it was reasonable to do so


The key question is whether the defendant knew or should have known that the claimant would rely on the advice (White V Jones)

What must be proven about the claimant?

Were they a known user- if the group of people is too wide he will not be a known user (Goodwill V British Pregnancy Service)


Was the advice given for a known purpose- it will not be a known purpose where the claimant relies on advice for on purpose when it was given for another purpose (Caparo V Dickman)