Negligence: Pure economic loss & Psychiatric damage

• Pure economic loss


  A loss that is purely financial

  These claims are not actionable - A claimant cannot typically claim pure economic loss as a result of the negligent act of another

  (Spartan Steel v Martin & Co)
• Primary victims


  A party directly involved in the negligent incident

  • Person who had physical damage or property loss
  • Near - misser
  • A rescuer

  (Chadwick v British rail)
• Secondary Victims 


  A party not directly involved in the negligent act

  • Family member witness
  • Bystander
  • Rescuer not placed in physical danger

  (Alcock)
• Criteria for secondary victims

  • The secondary victim must have close ties of love and affection with the primary victim
  • The secondary victim suffered injuries at the scene of a shocking event or in its immediate aftermath
  • The secondary victim suffers the shock through their own unaided senses, by sight or hearing the event or its immediate aftermath