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General principle in negligence = for pure economic loss ().
Spartan Steel - authority for the distinction between and economic loss.
Pure economic loss and
London BC
Tried to convert to property damage so that C could recover in . However, the property was already when C bought it. The court said that could be linked to as a special case of .
Held: it was a case of pure economic loss, so C recover.
v Church Commissioners of England
Tried to further justify the and defective buildings as being property damage.
: if structure was made up of and only 1 structure was defective, the individual component would be treated as . If it affected other components, it would be .
Murphy v DC
House defective with faulty . House of Lords said it was , which cannot be recovered.
C's interested in entering into and asked to obtain a from the D bank. It indicated that they were financially stable when they weren't. C lost £17k, but couldn't recover. They sued the bank for the reference. The case failed because D had issued a . However, if there was no valid disclaimer, a small exception could be narrowly applied:
There must be an , and C must rely on that assumption to their detriment.
Esso Petroleum v Mardon
Held: Esso had assumed and had knowledge of the potential consequences. They were held liable.
Chaudhry v Prabhakar
Held: D had assumed responsibility for the financial interest of his friend, so he was and was therefore liable.
Held: Hedley Byrne applied but not satisfied - was owed. There was not sufficient proximity between Caparo and the auditors since the auditors were not aware of the existence of nor the purpose for which the accounts were being used by them.
C bought a house relying on a survey carried out by D. D carelessly valued the house for more than it was worth. C bought the house and wanted to sue D for pure economic loss.
The court said that C was financially naive in that she should have got a , so therefore a Hedley Byrne relationship was not satisfied.
James McNaughton v
Six factors set out by - but they don't operate in a mechanical fashion:
(1) the purpose for which the statement was made. (2) the purpose for which the was communicated . (3) the relationship between the advisor, the advisee and any relevant third party. (4) the size of any class to which the advisee belongs. (5) the state of knowledge of the advisor. (6)
v Commissioner of the Police of the Metropolis
Claimant was a police officer. He wanted to apply to go to the police service in Northern Ireland. Whilst in the Metropolitan police force, he benefited from an - he wanted to know if he would still benefit from it in Northern Ireland. He rang the police station in London and asked, and they said that he would, when actually they had no idea. In reliance, he went ahead with the transfer. He lost money so sued D, on the basis of a relationship.
West Bromwich FC v El-Softy
Footballer suffered a knee injury. He consulted the D doctor who said he was fine, but he then suffered further damage. The club lost out on his transfer value, so they brought a claim.
Held: the claim failed because the relevant existed between the Dr and player, not the club. ().
Customs v Excise and Barclays Bank
Suggested there was no need for a Caparo just needed to be applied. This is an example of the courts trying to make the law more simplified.
Held: D had not assumed responsibility - they had no in C, so no duty was owed.
HA
Held: the local authority had statutory obligations, and if they are able to carry out their primary purpose, no duty was owed to C.
Henderson v Merrett Syndicates
Hedley Byrne relationships can extend in application to services.
C = employee of D, and had asked for a job reference. D provided a careless reference, so C didn't get the job.
This gave rise to a Hedley Byrne relationship, so D was liable.
D solicitors drew up a will for C's father. Will excluded C as beneficiaries because of a disagreement, but he later asked the will to be changed. The solicitors never changed it so C wanted to sue the for the money lost.
Held: there was a , despite the fact that there was no direct reliance.
C was carelessly advised to take out a pension that could not the family. The wife sued in negligence. Held: Hedley Byrne relationship established.