- Created by: huth0
- Created on: 12-02-18 21:27
· Claimant can sue for economic loss that follows physical loss but;
· can only claim economic loss following negligent act in certain circumstances.
· Negligent statements are dealt with differently
Consequential Economic Loss:
· Network Rail Infrastructure Ltd v Conarken 2011
· Loss is secondary to the damage
Pure Economic Loss:
· Must first establish whether the loss is pure economic loss;
· There are two types of losses caused by negligence;
o Pecuniary Losses – related to money
o Non-pecuniary losses – non-specific financial loss e.g. Loss of earnings/pain and suffering
· Difference between pure and other types of loss
o Spartan Steel & Alloys Ltd v Martin & Co Ltd 1973
§ Defendants negligently cut an electricity mains cable supplying power to the claimants’ factory.
§ Court allowed for recovery of physical damage to property and consequential economic loss but not the anticipated profit/pure economic loss.
§ This shows that a duty of care is only owed in respect of financial losses relating to property damage caused by the defendant’s negligence.
Defect of Quality in Goods or Property:
· Muirhead v Industrial Tank Specialities Ltd 1986
o A manufacturer of goods could be liable in negligence for economic loss suffered by a purchaser if there was very close proximity and the purchaser placed real reliance on the manufacturer rather than the vendor.
Defect of Quality in Buildings: