Economic loss (and negligent misstatement)

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  • economic loss
    • consequential economic loss
      • can only claim for economic loss that is a direct result of injury or damage to property
        • Spartan Steel v Martin
      • can't recover damages for pure economic loss in tort
        • Murphy v Brentwood District Council
      • Causation
        • Wagon Mound No. 1
        • c can claim for consequential economic loss but not pure economic loss as this is not a direct consequence of the original act
    • loss caused by negligent misstatement
      • conditions must be established to see if d owes c a doc
        • Hedley Byrne v Heller (1964)
        • 1; special trustworthy relationship between c and d
          • Yianni v Edwin Evans (1981)
          • Caparo v Dickman
        • 2; person giving advice must possess special skill relating to the advice given
          • Mutual life v Evatt
        • 3; party receiving advice acts in reliance on it to their detriment
          • Fasteners ltd v Marks
        • White v Jones
          • held; doc was owed as parties had special relationship and d knew he was being relied upon
      • d not usually liable for statements made informally or in a social situation
        • Chaudry v Prabhaker
          • held; d gave advice in social sitiation but possesed relevant expertise and knew he was being relied upon, so he was liable
      • once DOC established, refer to breach + state who defendant is compared to
        • finally mention if there's a DOC and breach c will be able to claim for damages


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