A result of a negligent misstatement,

Q 2019 : First issue : Whether Angela is liable for the pure economic loss suffered by Deshna.
Second issue : we have to assess whether Angela is liable for the heart attack ( physical injury)
suffered by Deshna.

Third issue: whether Angela will be liable for Normans psychiatric injury particularly his
depression.

Ans: Pure Economic Loss may be defined as loss that is purely financial in the sense that it does
not result from damage to the claimant’s property or injury to the claimants person. The
general rule for pure economic loss stands that it is not recoverable in the eyes of law but there
are two exceptions where pure economic loss is recoverable if it is 1) a result of a negligent
misstatement and 2) negligent provision of services. This question will tend to advise Angela
whether she is liable for the economic losses and the physical injury to Deshna and the
psychological harm or depression suffered by Norman.

First issue : whether Angela is responsible for the economic loss suffered by Deshna after she
invested all her money in Daredevil.com relying on Angelas advice. Taking into account the case
of Hedley Byrne v Heller this case establishes that a Defendant may owe a duty of care in the
advice or information that they give and that the duty extends to pure economic loss moreover
in order to establish a duty of care proximity has to exist in context of a special relationship
between the parties. Moving onto the requirements of special relationship that is derived from
the Hedley Byrne principle which is existence of a relationship based on professional or other
skill or expertise and reliance by the claimant on the defendant’s special skill and judgement.
Knowledge or reasonable expectation of knowledge on part of defendant that the claimant was
relying on the statement and it must be reasonable in the circumstances for the claimant to rely
on the defendant