Economic Loss

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Last updated: June 2, 2025

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Hint	Answer
Consequential economic loss (i.e. economic loss caused by physical damage) caused by a negligent act is actionable, but pure economic loss (economic loss only) is not	Spartan Steel v Martin
Both pure and consequential economic loss is recoverable when it results from a negligent misstatement AND where there is a special relationship between the parties	Hedley Byrne v Heller
.	x
1. D must possess some skill, expertise, or knowledge in the area related to the statement or advice they provided	Lennon v MPC
A special relationship can arise even in an informal, non-professional setting if all criteria are satisfied.	Chaudhry v Prabhakar
.	x

Hint	Answer
2. D must, or ought reasonably, be aware: 1) To whom advice is being given 2) The purpose for which advice is being given (Reeman v ___ – C cannot sue if the statement was intended for a different purpose than the one relied upon) 3) That the advice is highly likely to be acted upon (without further independence inquiry).	DoT
D can waive liability for a negligent misstatement through an explicit disclaimer, provided it is effectively communicated and understood by the other party.	Hedley Byrne v Heller
.	x
3. It must have been _______ for C to trust the information given by D.	reasonable
.	x