Pure Economic Loss in UK Law

Leading Cases
  • White and Another v Jones and Another
    • House of Lords
    • 16 Feb 1995

    Although the categories of cases in which such special relationship can be held to exist are not closed, as yet only two categories have been identified, viz. (1) where there is a fiduciary relationship and (2) where the defendant has voluntarily answered a question or tenders skilled advice or services in circumstances where he knows or ought to know that an identified plaintiff will rely on his answers or advice.

  • Commissioners of Customs and Excise v Barclays Bank Plc
    • House of Lords
    • 21 Jun 2006

    The second is commonly known as the threefold test: whether loss to the claimant was a reasonably foreseeable consequence of what the defendant did or failed to do; whether the relationship between the parties was one of sufficient proximity; and whether in all the circumstances it is fair, just and reasonable to impose a duty of care on the defendant towards the claimant (what Kirby J in Perre v Apand Pty Ltd [1999] HCA 36, (1999) 198 CLR 180, para 259, succinctly labelled "policy").

    First, there are cases in which one party can accurately be said to have assumed responsibility for what is said or done to another, the paradigm situation being a relationship having all the indicia of contract save consideration. If answered negatively, further consideration is called for.

  • S.C.M. (United Kingdom) Ltd v W. J. Whittall & Son Ltd
    • Court of Appeal (Civil Division)
    • 17 Jul 1970

    In actions of negligence, when the plaintiff has suffered no damage to his person or property, but has only sustained economic loss the law does not usually permit him to recover that loss. He gave this illustration: When a mine is flooded by negligence, thousands of men may be thrown out of work. So here I would ask: When an electric cable is damaged, many factories may be stopped from working. It is not sensible to saddle losses on this scale on to one sole contractor.

  • Caparo Industries Plc v Dickman
    • House of Lords
    • 08 Feb 1990

    What emerges is that, in addition to the foreseeability of damage, necessary ingredients in any situation giving rise to a duty of care are that there should exist between the party owing the duty and the party to whom it is owed a relationship characterised by the law as one of "proximity" or "neighbourhood" and that the situation should be one in which the court considers it fair, just and reasonable that the law should impose a duty of a given scope upon the one party for the benefit of the other.

  • Tesco Stores Ltd v David Constable & Others
    • Court of Appeal (Civil Division)
    • 16 Abr 2008

    A public liability policy provides cover against liability to the public at large. By contrast private liability arises from contracts entered into between individuals. Public liability in this sense arises in tort; it does not and cannot arise only in contract. As a general rule a claim in tort cannot be founded upon pure economic loss.

  • McFarlane v Tayside Health Board
    • House of Lords
    • 25 Nov 1999

    The distinction is technical and artificial if not actually suspect in the circumstances of the present case, and is to my mind made irrelevant by the fact that Catherine's conception and birth are the very things that the defenders' professional services were called upon to prevent. In principle any losses occasioned thereby are recoverable however they may be characterised.

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  • Income Tax (Earnings and Pensions) Act 2003
    • UK Non-devolved
    • 1 de Enero de 2003
    ......1)] (which provides that where a loss. in an employment is sustained, relief may be ...Economic Area signed at Oporto on 2nd May 1992 as adjusted ... 1122. This section is pure drafting, which defines the new label ‘the ......
  • Finance Act 2013
    • UK Non-devolved
    • 1 de Enero de 2013
    ...... provision about returns which are economically equivalent to interest. CHAPTER 3 . Corporation tax: general . Losses, other reliefs and deductions Losses, other ... (iii) a pure protection policy, . (b) the event is the issue ......
  • The Seed Marketing Regulations 2011
    • UK Non-devolved
    • 1 de Enero de 2011
    ...... a label approved by the Organisation for Economic Cooperation and Development 13 for the varietal ... of beet, the declared number of clusters or pure seed); . (j) (j) where granulated pesticides, ... conservation of a genetic resource, avoid loss of genetic diversity or natural habitat and ......
  • The Pressure Equipment (Safety) Regulations 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ...... “economic operator” means a manufacturer, an importer or ...” means gases, liquids and vapours in pure phase as well as mixtures thereof; fluids may ... in the equipment or assembly for any loss or damage suffered by reason of the notice if ......
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Law Firm Commentaries
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