liability in negligence for economic loss and osyhiatric inj

• Liability for pure economic loss

  Pure economic loss can't be assessed for a loss of profit -Spartan Steel v Martin and Co, in this case the loss of profit was not allowed.
• Why isn't loss of profit allowed?

  Because under the policies it is not allowed because it would be hard to calculate the mass of profit involved. This wouldn't be fair on the defendant.

  Also it is more to do with contract law rather than tort.
• Loss caused by negligent mistatement two different parties


  Two party liability- A gives advice or makes a statement that is incorrect and B relys on this statement and suffers loss due to this.

  Three party liability- A makes a statement to B, and B tells C. C then suffers loss in relying on the statement.
• What was established in the case of Hedley Bryne v Heller and Partners?


  The statement must be made negligently and

  there is a special relationship between the parties.
• What was set out in the House of Lords to prove a special relationship?


  - The possession of a special skill or expertise on the part of the person giving advice. Does not need to be a professional advisor.

  -A reliance by the claimant on the advise- it is used and acted upon.

  -The advice is communicated directly to the claimant.

  - The person giving the advice knows that it is being required for a purpose described at the time to a defendant.

  -There is no disclaimer.

  -Caparo v Dickman
• Social situation


  The advice can be given in a social situation - Negligent misstatement can be claimed even if the advice is given in a social situation.

  -Chaudhry v Prabhakar
• Liability for psychiatric harm: What is psychiatric harm?

  Nervous shock
• What does a secondary victim have to prove?


  -there was an accident or sudden event, where someone was negligent which caused injury.

  -Some form of mental injury

  -Must pass Alcock criteria

  -A person of reasonable fortitude would have suffered the same injury in the circumstances.
• What negligence by the defendant must there be?


  Must be a duty of care, a breach of the care, and a loss of damage caused.
• What must there be for a injury to be classed as a mental injury


  Medical evidence

  -Must be more than a mere shock or grief

  -Must be long term

  -Can include loss of earnings whilst suffering from condition

  -Depression, post traumatic stress, acute anxiety.
• What is the Alcock criteria?


  Alcock v Chief Constable of South Yorkshire established in this case.

  -The claimant must have a close tie of love with the victim

  -The claimant suffered mental injury as the scene of the accident or at its immediate aftermath

  Two hour period was approved in Mcloughlin v O'Brien

  -The claimant suffered shock through his or hers own aided senses.
• Categories of claimants for primary/secondary


  -Rescuers=Can claim, usually only professionals can claim now- Chadwick v British Rail

  -Bystanders= not be able to claim McFarlane v E E Caledonia

  -Near missers= Close to the scene of the accident, can claim.