LAWs 204 economic loss

Front

What did the court hold in the case of Hedley Byrne?

Back

In the case of Hedley Byrne, the court held that if someone posses a special skill, and they are tasked by their employer to give advice to someone and that advice is negligently given, then that special someone may be liable for negligence, if that negligently given misstatement causes economic harm.

Front

What is a factor that accentutes the rule in Hedley Byrne?

Back

If the plaintiff ought to have reasonably belived that they could rely on the advice of that special someone, because that special someone presented themselves as possessing a special skill, then that is a factor that can accentuate the defendant's liability for a negligently given misstatement that causes economic harm.

Front

What did the court hold in the case of Caparo Industries?

Back

In the case of Caparo, the court held that, if the defendant ought to have known the purpose behind the plaintiffs inquiry, and ought to have known that the plaintiff would reasonably rely on the defendant's advice, in order to proceed with their purpose (e.g. in order to proceed with their transaction with the third-party), then the defendant will be liable if that advice is negligently given and causes economic loss to the plaintiff!

Front

What did the court hold in the case of Steel?

Back

In the case of steel, the court held that if the plaintiff, reasonably relies on the advice given by the defendant, and the defendant reasonably forsee's the plaintiff relying on that advice, then the defendant may be liable if the advice is negligently given/ is false and causes economic loss.

Front

What did the court hold in the case of Customs?

Back

In the case of Customs the court held that in order to determine, wether or not the defendant is liable for a negligently given misstatement, that causes the plaintiff to suffer a pure economic loss, a duty of care must be established, (e.g. forseability, proximity and fair, just and reasonableness).

Front

Define reliance in relation to the third and fourth criteria in the case of Hedley Byrne, using case law.

Back

In the case of Customs, the court held that reliance, for the sake of the 3rd and 4th criteria in the hedley byrne test, means that the plaintiff would've proceeded differently if they hadn't been relying on the negligently given advice that was given to them by the defendant.