A combination of a plaintiff's reliance on a statement, the reasonableness of ... replaced the rule excluding liability for pure economic loss caused by negligent acts or omissions. Negligent Misstatement An exception to the reluctance of the law to compensate for pure economic loss. Goals for this section: To be able to define pure economic loss, and justifications for the restriction of its liability under negligence. Additional books and articles the author has highlighted for further reading. Pure economic loss caused by Negligent Misstatement Development of negligent misstatement as a cause of action A negligent misstatement is information or advice which is honestly provided but is inaccurate or misleading. Cram.com makes it easy to get the grade you want! The tort of negligence provides compensation for all sorts of loss that are financial in nature. Key facts. More commonly, the issue arises due to a negligent misstatement, or provision of professional services. It may be consequential, that is resulting from the acquisition of a defective product or property. Abstract. Keane CJ cast doubt over whether damages should be recoverable for pure economic loss in Ireland, other than in cases of negligent misstatement. In the recent case of Delphisure Group Insurance Brokers Cape v Dippenaar and others 2010 (5) SA 499 SCA, an insurance broker was found liable for negligent misstatements (which the court calledmisrepresentations) causing a pure financial loss.This is the first case involving an insurance broker where the doctrine of negligent misstatements, specifically, has been evoked. Further reading. Mere economic loss was held not to be recoverable. Keep track of your revision with these checklists for each topic. Finally, the third exception, economic loss due to negligent misstatement, is discussed with reference to the conditions required for a successful claim in this area. The action for negligent misstatement is a … Resources; Outline answers to exam questions. The law of negligence extends to liability for financial loss caused by negligent statements and advice (as opposed to negligent acts). Learn vocabulary, terms, and more with flashcards, games, and other study tools. Quickly memorize the terms, phrases and much more. Chapter 4: Pure economic loss and negligent misstatement. Start studying Torts B: Pure Economic Loss: Negligent Misstatement. the decision of Hedley, Byrne & Co Ltd v Heller & Partners Ltd [1963] 3 ALL ER 575, where the court pronounced the principle that a person could be held liable for negligent misstatement which resulted in mere economic loss, as opposed to damages to property or person. Multiple choice questions. However, in limited situations the court allows recovery of economic loss that cannot be classified as pure economic loss. If you were to be run over by a negligent car driver, your damages would represent not only your physical injuries (your pain and suffering, etc) but also the financial consequences of those injuries (‘consequential economic loss’). Home » Commercial Law, Litigation & Disputes » Pure economic loss caused by Negligent Misstatement and the Duty of Care » Exclusion Clauses Exclusion clauses Parties often insert exclusion clauses into contract because they are not willing to accept full responsibility for contractual breaches or negligence on their part. An example of so-called “pure” (or more accurately purely) economic loss is where a negligent act cuts an electric cable causing financial loss or damage to local factories. Study Flashcards On Pure Economic Loss & Negligent Misstatement at Cram.com. negligent misrepresentation or misstatement is an example where recent case law has spelt out the relevant criteria for establishing a duty of care. 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