Economic Loss

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

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

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1. D must possess some skill, expertise, or knowledge in the area related to the statement or advice they provided

A special relationship can arise even in an informal, non-professional setting if all criteria are satisfied.

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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).

D can waive liability for a negligent misstatement through an explicit disclaimer, provided it is effectively communicated and understood by the other party.

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3. It must have been _______ for C to trust the information given by D.

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