Pure economic loss

• Pure economic loss?

  financial loss not caused by physical injury or damage to property
• Why is tort law restricted?

  opens the flood gates
• Sparton Steel v Martin

  negligently cut off power to a factory

  loss of profit due to damaged steel, could claim

  factory closed, can't claim

  established pure economic loss
• Weller v Foot

  Foot and mouth disease violently escaped farm

  unsuccessful claim
• Exception ?

  negligent misstatement
• Negligent misstatement?

  acting on someones negligent advice and suffering economic loss as a result
• 2 party liability?

  direct advice between the 2 individuals - A and B
• 3 party liability?
• Hedley Byrne v Heller and Partners?

  advertising company approached bank, company went into liquidation

  special relationship established but was a disclaimer

  Claim failed
• Requirements for a special relationship?

  special skill, reliance, communication, no disclaimer, purpose and knowledge
• Chaudhry v Prabhaker?

  second hand car , reliant on advice bought it

  cost of vehicle from dealer and sued for negligent misstatement