Negligent infliction of economic loss and

pure economic loss tort law notes

Even more controversial are recent claims for such injuries as a lost or ruined holiday following damage to the vehicle. Malaysia[ edit ] In Malaysia, the Federal Court in Majlis Perbandaran Ampang v Steven Phoa Cheng Loon [] 2 AMR followed the decision in Caparo Industries v Dickman [] UKHL 2 where it held; pure economic loss is claimable if 1 the damage was foreseeable, 2 the relationship between the parties was one of sufficient proximity, and 3 it is fair, just and reasonable to impose a duty of care on the defendant.

Because compensation for the defects would have been recoverable by the landowner who originally engaged the builder, the subsequent purchaser enjoyed similar rights.

Pure economic loss negligent misstatement

Load Next Page. Bryan v Maloney , [14] in which the purchaser of a home was entitled to compensation from the builder for latent defects. Canada[ edit ] Justice Cardozo's indeterminacy concerns were relied on by the Supreme Court of Canada to restrict imposing liability on a corporation's auditors for negligently auditing the corporation's financial statements. But the effect of the nuisance—typically an oil refinery or airport—on its victims can be catastrophic, often amounting to indirect expropriation of their land. As a result, German courts have often turned to a contract theory to impose liability. The duration of the interference may also be crucial, temporary annoyances being on the whole more tolerable. Balancing competing interests is therefore the key feature, and numerous judgments make it a difficult area of law. The loss was recoverable because the defendants knew or should have known that Caltex would suffer it. Intentional interference with goods is unusual and therefore receives specialized treatment by some systems. Although the latter claim tends to be regarded as extravagant and beyond the competence of tort law at least , the others tend to be satisfied, subject to the rules of remoteness and the pervading test of reasonableness e. Sometimes courts focus on the duration of the interference and treat prolonged deprivation as equivalent to property damage. For example, if an automobile is damaged in a collision, its owner will be able to claim from the wrongdoer the cost of repairs. Or if a fire forces the police to cordon off an area, depriving its residents of access to their automobiles, have they suffered a property interference? Cardozo of the New York Court of Appeals famously described pure economic loss as "liability in an indeterminate amount, for an indeterminate time, to an indeterminate class".

A miscellany of wrongs, ranging from encroachment of branches or roots to falling tiles or slates from nearby roofs, are covered by the amorphous tort of private nuisancewhich also covers such interferences as excessive vibrations, noise, smells, and other, more modern, instances of pollution.

It has certainly helped preserve rural and residential areas against intruding noxious trades; but it has also permitted increased industrial pollution. This has a mixed effect, however.

consequential economic loss definition uk

These disputes have given rise to some judgments that have attempted to work out solutions on the basis of a better understanding of the insurance implications—notably, in the Canadian Supreme Court case Canadian National Railway v.

Another difficulty stems from the fact that many of these cases sit uncomfortably on the traditional divide between contract and tort. Older English decisions distinguish between sensible material damage to the land and mere interference with its use and enjoyment.

Negligent infliction of economic loss and

In contrast, a rigid law of contract, especially in the English common law , has led to an expansion—often far-fetched and ill-considered—of the law of tort, though this is nowadays in retreat. Sometimes courts focus on the duration of the interference and treat prolonged deprivation as equivalent to property damage. Another difficulty stems from the fact that many of these cases sit uncomfortably on the traditional divide between contract and tort. The distinction—not found in any rigid form in civil-law systems—is, however, often unworkable; and to the extent that it reflects a past valuing of tangible forms of property over intangible ones, it may be inadequate. Even more controversial are recent claims for such injuries as a lost or ruined holiday following damage to the vehicle. And what of extra transportation costs incurred during the period of repair or the expense of hiring an equivalent substitute? However, La Forest J, writing for a unanimous court, declined to impose liability on the auditors for policy reasons, citing Justice Cardozo's concerns over indeterminate liability. Although the latter claim tends to be regarded as extravagant and beyond the competence of tort law at least , the others tend to be satisfied, subject to the rules of remoteness and the pervading test of reasonableness e. It has certainly helped preserve rural and residential areas against intruding noxious trades; but it has also permitted increased industrial pollution. Bryan v Maloney , [14] in which the purchaser of a home was entitled to compensation from the builder for latent defects. Load Next Page. But the effect of the nuisance—typically an oil refinery or airport—on its victims can be catastrophic, often amounting to indirect expropriation of their land. Hence, there exist special compensation acts or constitutional clauses providing for compensation. On the whole, however, German law and common law have come up with fairly similar solutions proclaiming, unlike French law, a general though increasingly ill-defined hostility toward compensating pure economic loss. Or if a fire forces the police to cordon off an area, depriving its residents of access to their automobiles, have they suffered a property interference?

In contrast, a rigid law of contract, especially in the English common lawhas led to an expansion—often far-fetched and ill-considered—of the law of tort, though this is nowadays in retreat.

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Negligently infliclicted economic loss