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Economic loss and the issue of whether a person may be entitled to damages if they have suffered pure economic loss.
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The problem question is based on the subject of economic loss and the issue is whether a person may be entitled to damages if they have suffered pure economic loss. Pure economic loss unaccompanied by physical damage presents a particular problem in negligence, as negligence has traditionally operated in a protective manner to compensate people for loss caused by negligently inflicted physical damage. Although Mary has suffered from loss of income while she waits for the road to be repaired, all she has suffered is pure economic loss, and it is very unlikely that she would have a claim against Rusty, Dodgem or Brentfield council. The general principle of economic loss was illustrated in the early case of Cattle v Stockton Waterworks1. The courts held that the action could not succeed because no property of the claimant was damaged, therefore, the principle was that without proprietary interest in something damaged,...
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