economic loss

• Consequential economic loss


  Loss which arises from physical damage can be claimed for
• Weller v Foot and Mouth Disease Research Institute


  Pure economic loss cannot be claimed for
• Situations in which negligent misstatement can occur

  1. Two-party liability

  2. Third-party liability
• Two-party liability


  D gives advice to C, C suffers a loss from relying on this advice
• Third-party liability


  D makes a statement to 3rd party, 3rd party passes this on to C, C relies on this and suffers a loss
• Caparo Industries v Dickman

  Special relationship:

  1. D has special skill or expertise

  2. C relies on the advice

  3. Advice is communicated directly to C

  4. D knows the advice is required for a particular purpose

  5. No disclaimer
• Chaudrey v Prabhakar


  Misstatement can occur between friends/socially