Economic loss

• What is the principle regarding economic loss in tort law?

  No duty of care for pure economic loss
• In which case was it established that no duty of care is owed to avoid pure economic loss?

  Spartan Steel & Alloys v Martin
• When can liability be imposed for economic loss?

  When caused by negligent misstatement
• What case established liability for negligent misstatement?

  Healey Byrne v Heller & Partners Ltd
• What must occur for a defendant to be liable for negligent misstatement?

  Statement must be inaccurate due to negligence
• What are the conditions for a duty of care in making a statement?

  Special relationship must exist
• What are the criteria for establishing a special relationship in negligent misstatement?

  • D has a special skill related to the statement
  • D knows the claimant will likely rely on it
  • D knows the identity of the claimant
  • Claimant relies on it, causing economic loss
  • It is reasonable for the claimant to rely on it
• What was the outcome in Chaundhry v Prabhakar?

  C suffered economic loss from unroadworthy car
• Why did C rely on D's advice in Chaundhry v Prabhakar?

  C believed D was knowledgeable about cars
• What was the situation in JEB Fasteners v Bloom?

  C knew the financial state of the company
• Why was there no reliance in JEB Fasteners v Bloom?

  C was aware of the company's financial state