When a client loses money because of someone's carelessness — a negligent valuation, flawed advice, or a defective building — they will ask whether they can recover. Negligence law is wary here: financial loss that doesn't flow from physical harm is treated very differently from injury or property damage, mainly because the courts fear liability spiralling to an indeterminate class for indeterminate amounts. Knowing where the line falls is essential everyday knowledge for any solicitor advising on professional liability or pursuing a claim.
This lesson builds your understanding piece by piece:
- Nature of Pure Economic Loss — what counts as pure economic loss and how it differs from consequential loss.
- Economic Loss Caused by Negligent Acts — the general no-duty rule, defective products, and relational loss.
- Negligent Misstatement and the Special Relationship — the assumption of responsibility, reliance and knowledge that unlock recovery.
- Reliance and Disclaimers — when reliance is reasonable and how disclaimers prevent or limit a duty.
- Duty to Third Parties and Other Providers — when duties reach beyond the immediate parties, including auditors, surveyors and solicitors.
- Scope of Duty, Causation and Defences — the advice/information distinction and the limits on what can actually be recovered.
By the end, you'll be able to reason through any pure economic loss scenario with confidence.