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Economic loss and the law of negligence in delict.
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| Submitted: Fri Jan 28 2005
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INTRODUCTION The element of economic loss provides many difficulties to the law of negligence in delict. There are three main classifications of economic loss; derivative, secondary and pure economic however for the purpose of this essay I shall be examining mainly the concept of pure consequential economic loss. This type of loss in general is not recoverable in negligence and there is no duty to avoid causing financial loss as in the words of Lord Bridge in Murphy v. Brentwood District Council 1991: "By reason of some special relationship of proximity which imposes on the tortfeaser a duty of care to protect against economic loss." What this is saying is that a duty of care can arise irrespective of pure economic loss. The pursuer must satisfy what we call the enhanced requirements of proximity, and this was highlighted in Capro Industries plc v Dickman, and it must be fair and reasonable to...
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