A-Level Law: Negligent Misstatement

When can you claim for pure econ loss?

When C relies on a negligent inaccurate statement

Hedley Byrne v Heller

For D to owe a DoC there must be a special relationship

Requirements for special relationship

1) D posses skill or expertise - Chaudhry

2) Must be reasonable for C to rely on the statement given - Smith v Bush

3) Known user of statement - Caparo v Dickman

4) Known purpose - Reeman

5) D voluntarily take responsibility for the statement - Pachett

Answer plan

Rule - Can only claim for a pure loss if they rely on an inaccurate, negligent statement

Hedley Byrne v Heller - To owe a DoC D must have a special relationship with the C

Special relationship

• D possesses skill or expertise - Must have some knowledge - Chaudhry v Prabakar

• Must be reasonable to rely on the statement - Smith v Bush

• Known user of statement - Caparo v Dickman

• Known purpose - Reeman

• Voluntarily takes responsibility for statement - Patchett

Must prove Breach of duty and how that caused the loss

Clues to tell if Q is about negligent misstatement

“ X advises/gives advise” + an amount of money