Economic Losses in Negligence
- Created by: cephillips
- Created on: 10-05-14 12:08
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- Economic Losses in Negligence
- Two Types of Loss
- Consequential Economic Losses
- Losses that stem from physical damage to property itself
- Actionable
- Losses that stem from physical damage to property itself
- Spartan Steel Ltd v Martin [1973]
- Consequential Economic Losses
- Actionable
- Actionable
- Pure Economic Losses
- Losses which do not arise from physical harm
- Non-Actionable
- Losses which do not arise from physical harm
- Limiting factor so that defendants do not face "crushing liability" per Lord Denning at 36
- Also if it is a loss which could've been covered by insurance you are less likely to receive compensation
- Consequential Economic Losses
- Pure Economic Losses
- Non-Actionable
- Limiting factor so that defendants do not face "crushing liability" per Lord Denning at 36
- Also if it is a loss which could've been covered by insurance you are less likely to receive compensation
- Limiting factor so that defendants do not face "crushing liability" per Lord Denning at 36
- Non-Actionable
- Consequential Economic Losses
- 3 Principles of Economic Losses
- 1. Economic Loss is generally not recoverable where it would undermine contractual intentions
- More economically efficient to allow parties to contractually stipulate where losses fall
- Freedom of contract is there to allow parties to balance quality vs price
- 2. Defective Property loss is not recoverable in Tort
- Muirhead v Industrial Tank Specialists [1986]
- Exxceptions:
- Can recover for an injury caused by defect if it is unreasonable to expect C to have fixed it himself - Targett v Torfaen BC [1992]
- Can recover where the defect could cause a harm to a third party - Murphey v Brentwood LBC [1991]
- 3. No recover if C has no propriety interest in damaged property
- Cattle v Stockton WaterWorks [1875] "flooded tunnel" case
- 1. Economic Loss is generally not recoverable where it would undermine contractual intentions
- Negligent Misstatement
- Hedley Byrne Principles - Two Stage Test (Hedley Byrne v Heller [1964]
- 1. "SR that leads to a voluntary assumption of responsibility"
- SR generally means business connection - unless a friend acting as an agent - Chaudry v Prabhakar 1988
- D does not have to be in business of giving advice but see reasonable reliance - Esso v Mardon [1976]
- Cannot sue for harm caused to someone else - WBA FC v El-Safty [2005] and dislcaimers are subject to the S 11 Unfair Contract Terms Act 1977 reasonableness test
- D must've known or reasonably be expected to know that C was relying on him
- 2. There was Reasonable Reliance by the claimant
- Reliance must be reasonable:
- Must actually take place - a second opinion shows it hasn't - Barclays Bank v Customs and Exercise [2006]
- 2. There was Reasonable Reliance by the claimant
- 2. There was Reasonable Reliance by the claimant
- Reliance must be reasonable:
- Must actually take place - a second opinion shows it hasn't - Barclays Bank v Customs and Exercise [2006]
- 1. "SR that leads to a voluntary assumption of responsibility"
- Hedley Byrne Principles - Two Stage Test (Hedley Byrne v Heller [1964]
- Will Drafting Cases
- A solicitor drafting a will owes a DoC to it's intended beneficiaries - White v Jones [1995]
- But there is no liability if the mistake can still be rectified - Hemmens v Wilson Browne [1993]
- Will Drafting Cases
- A solicitor drafting a will owes a DoC to it's intended beneficiaries - White v Jones [1995]
- But there is no liability if the mistake can still be rectified - Hemmens v Wilson Browne [1993]
- But there is no liability if the mistake can still be rectified - Hemmens v Wilson Browne [1993]
- A solicitor drafting a will owes a DoC to it's intended beneficiaries - White v Jones [1995]
- Will Drafting Cases
- But there is no liability if the mistake can still be rectified - Hemmens v Wilson Browne [1993]
- A solicitor drafting a will owes a DoC to it's intended beneficiaries - White v Jones [1995]
- Two Types of Loss
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