Economic Loss

Economic Loss

1. Consequential

   • Always recoverable

2. Pure

   • Only recoverable if there is a Negligent Misstatement
     • Spartan Steel
   • Must be a 'Special Relationship'/ Duty of care (Use Hedley Bryne v Heller test)
     • 5 Factors need to be satisfied
       • 1. D must have the Skill/Expertise needed
         • Lennon v MPC
         • Chaudhry v Prabhakar
       • 2. There must be voluntary assumed responsibility
         • D has the choice to not give the advice or to give it with a disclaimer
         • Hedly Bryne - was a disclaimer
       • 3. Known User
         • Caparo v Dickman (no KU)
         • Morgan Crucible v HSB (KU)
       • 4. Known Purpose
         • Caparo v Dickman (no KP)
         • Law Society v KPMG (KP)
       • 5. Must prove reasonable reliance