Economic Loss and Negligent Misstatements (1 Viewer)

[monzi]

Hello everybody,

I need assistance. What is the relationship between Economic Loss and Negligent Misstatements? I hate Luntz and Hambly, so ambiguous.

 

[melsc]

Re: Economic Loss and Negligent Mistatements

I'm not sure exactly what you are asking? I've got my book here though if you care to make it clear for me *I dont know why my mind is so slow at the moment*. We use the tutorial series.

 

[seremify007]

Re: Economic Loss and Negligent Mistatements

I'm not a law student but isn't (pure) economic loss when you've only suffered financially in which case you can't sue for negligence? *shrugs* I really gotta pay more attention in LEGT1711.

 

[Rorix]

Re: Economic Loss and Negligent Mistatements

What is the question?

(for any who might be mislead, seremify is wrong in saying that pure economic loss is not recoverable as a rule)

 

[Soma]

Re: Economic Loss and Negligent Mistatements

Look at Hedley Byrne, that established pure economic loss as a cause for damages and also allowed for negligent misrepresentation whereas damages only used to be available in the tort of deceit for fraudulent misrep.

The relationship between the two is that negligent misreps can lead to pure economic loss and damages can still be claimed. Important Australian cases to look at are San Sebastion and Shaddock.

Hope that helped.

 

[monzi]

That's the question.

What is the relationship between Pure Economic Loss and Negligent Misstatements? Yes, I've looked at Hedley Byrne v Heller

Hedley Byrne was not really concerned with pure economic loss, but with liability for statements. However, by recognizing that there are some circumstances in which pure economic loss is recoverable, Hedley Byrne did pave the way for a rapid expansion in litigation for economic loss.

I know that relates to it, i think if anybody more advanced wants to add something in.

Thanks.

 

[Rorix]

Your question is so broad it is impossible to tell what you want answered. It is like saying "whats the relationship between battery and physical injury?".

The leading authority on negligent missstatement in Australia is Tepko v Water Board which was a case involving pure economic loss. I am sure that case will answer any questions you may have. For reference, the Court unanimously held that the applicable test for duty was Barwick's CJs test in Mutual Life etc. v Evatt