LIABILITY FOR ECONOMIC LOSS
AND PSYCHIATRIC INJURY
QUESTIONS AND THEIR EXPECTED
CORECT ANSWERS
What four things can be claimed for in tort?
- Physical injury
- Damage to property
- Economic loss
- Psychiatric injury
What is economic loss?
Financial loss and damage suffered by a person such as
can only be seen on a balance sheet rather than a
physical injury to the person or destruction of property
Can you claim for pure economic loss?
No, if the financial loss is not related to a personal injury or
damage to property, no duty of care is owed to avoid
causing another to suffer this loss
What is an example of pure economic loss?
Loss of earnings due to car accident but nothing else
What is the exception to the pure economic loss
statement?
Acting on a negligent misstatement when a special
relationship can be established
What case can be used regarding pure economic
loss?
Spartan Steel v Martin and Co.
, What case is relevant in relation to negligent
misstatements?
Hedley Byrne and Co Ltd v Heller and Partners Ltd - set
out that the statement must be negligently made, and that
there must be a special relationship between the parties.
What is two party liability?
Where A makes a statement to B and B suffers loss in
relying on it. If their relationship is professional, a duty of
care may be owed.
What is three party liability?
Where A makes a statement to B and communicates it to
C who suffers loss in relying on it. There is no contractual
relationship between A and C.
What five features of a special relationship were set
out by the House of Lords in Caparo v Dickman?
1) Possession of important skill in the field in which they
have given advice
2) A reliance on the advice by the claimant with sufficient
proximity
3) The advice is communicated directly to claimant
4) The person giving the advice knows it is being required
for a purpose described at the time to the defendant
5) There is no disclaimer to act as a defence
Where may a special relationship arise if not
professional?
In a social situation - Chaudhry v Prabhakar
What is psychiatric injury?
a long term, diagnosed mental injury which is greater than
shock or grief- Behrens v Bertram
What is a primary victim?
AND PSYCHIATRIC INJURY
QUESTIONS AND THEIR EXPECTED
CORECT ANSWERS
What four things can be claimed for in tort?
- Physical injury
- Damage to property
- Economic loss
- Psychiatric injury
What is economic loss?
Financial loss and damage suffered by a person such as
can only be seen on a balance sheet rather than a
physical injury to the person or destruction of property
Can you claim for pure economic loss?
No, if the financial loss is not related to a personal injury or
damage to property, no duty of care is owed to avoid
causing another to suffer this loss
What is an example of pure economic loss?
Loss of earnings due to car accident but nothing else
What is the exception to the pure economic loss
statement?
Acting on a negligent misstatement when a special
relationship can be established
What case can be used regarding pure economic
loss?
Spartan Steel v Martin and Co.
, What case is relevant in relation to negligent
misstatements?
Hedley Byrne and Co Ltd v Heller and Partners Ltd - set
out that the statement must be negligently made, and that
there must be a special relationship between the parties.
What is two party liability?
Where A makes a statement to B and B suffers loss in
relying on it. If their relationship is professional, a duty of
care may be owed.
What is three party liability?
Where A makes a statement to B and communicates it to
C who suffers loss in relying on it. There is no contractual
relationship between A and C.
What five features of a special relationship were set
out by the House of Lords in Caparo v Dickman?
1) Possession of important skill in the field in which they
have given advice
2) A reliance on the advice by the claimant with sufficient
proximity
3) The advice is communicated directly to claimant
4) The person giving the advice knows it is being required
for a purpose described at the time to the defendant
5) There is no disclaimer to act as a defence
Where may a special relationship arise if not
professional?
In a social situation - Chaudhry v Prabhakar
What is psychiatric injury?
a long term, diagnosed mental injury which is greater than
shock or grief- Behrens v Bertram
What is a primary victim?
