Tort: Economic Loss

• Purpose of damages in tort: restitutio in integrum, putting the claimant in the position they would have been in if the tort had not occurred
• Loss of profit is different in tort compared to contract
• Majority of businesses can arrange insurance to cover losses more efficiently than resorting to litigation
• In Weller & Co. v Foot & Mouth Disease Research Institute (1966), a loss of profit was considered pure economic loss and could not be claimed
• In Spartan Steel & Alloys Ltd v Martin & Co. Ltd (1972), only loss which is a physical consequence of the breach can be claimed
• In Hedley Byrne v Heller & Partners Ltd (1964), D can be liable for misstatement where there is a special relationship and no disclaimer
• Caparo Industries PLC v Dickman (1991) establishes the five requirements of a special relationship where D can be liable for misstatement
• In White v Jones (1995), a solicitor owed a duty to beneficiaries of a will having assumed the responsibility of drawing up that will
• In Steel v NRAM (2018), D's reliance on a misstatement must be proper and reasonable
• In Banca Nazionale v Playboy Club (2018), there can only be a special relationship where D knows the identity of the potential C
• In Chaudhry v Prabhakar (1988), special relationships can exist even in a social context if all the Caparo criteria are met