duty of are - economic loss (4)
- Created by: Molly Byrne
- Created on: 22-10-15 16:12
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- Duty of care - Economic loss
- There are two types of pecuniary loss in negligence
- 1. Pure economic loss - financial loss stemming from harm caused by negligence
- 2. Consequential economic loss - financial loss suffered as a result of another harm such as injury or damage.
- Spartan Steel & Alloys v Martin & Co
- Shows a duty of care for financial loss is owed for consequential economic loss only.
- The df negligently cut an electrical cable that supplied power to clms factory.
- caused a 14 hour power cut and 'melt' had to be poured away.
- Not allowed to claim for anticipated loss of profit on other steel that would have been made as it was purely economic. Only for the melt already being made which was consequential.
- caused a 14 hour power cut and 'melt' had to be poured away.
- An exception for this rule:
- Negligent mistatement
- Hedley Byrne - 4 stage test.
- 1. fiduciary relationship
- 2. Party giving advice has voluntarily assumed the risk.
- 3. reliance on the advice by the other party
- 4. reliance was reasonable in circumstances
- Hedley Byrne - 4 stage test.
- Negligent mistatement
- There are two types of pecuniary loss in negligence
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