Pure Economic Loss

Define pure economical loss and add any relevant cases

C can't recover for any financial losses unless they flow from physical damage (Spartan steel v Martin & Co ltd) (Jain v Strategic health Authority)

What is the exception to this rule and add relevant case

That C cannot claim for pure economical loss where D has made a negligent misstatement (Hedley Byrne v Heller and Partners)

How can a claim in pure economical loss be successful

1) If a negligent misstatement has been made

2) If there is a special relationships between C & D

State the five criteria required to establish a special relationship

1) D must have special skill or expertise

2) C must assume responsibility for their statement

3) Must be a known user

4) Must be a known purpose

5) D must show that he relied on C's statement and for it to be reasonable for D to have relied on C's statement

State the relevant cases for D possessing special skill or expertise / skill and judgement

Lennon v MPC and Smith v Eric S Bush / Mutual life v Evatt

State the relevant cases for C must assume responsibility for their statement

Hedley Byrne v Heller and Partners

State the relevant cases for Must be a known user

Caparo v Dickman

State the relevant cases for Must be a known purpose

Law Society v Peat Marwick

State the relevant cases for D must show that he relied on C's statement and for it to be reasonable for D to have relied on C's statement

Smith v Eric S Bush