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The first 200 words of this essay...
It is established law that recovery for pure economic loss is possible if it is caused by a careless statement. This was established in the case of Hedley Byrne & Co Ltd v Heller and Partners Ltd1, so that those in the business of giving skilled advice may be liable for any economic loss suffered from giving careless information. Limits on the circumstances in which a person is held to have a duty of care were laid out to prevent "floodgates" of claims. It is these qualifications which we must focus on to ascertain whether there are possible claims in negligence for both Stout and Nice.
Staff and Stout
Initially there must be a "special relationship" or proximity between the parties, using a "special skill" by the defendant. In this case, Staff gives specialist advice to Stout with regards to a house he is buying in his capacity as a professional surveyor. This would be regarded as fulfilling the requirement for proximity set out in Hedley Byrne, however, in Caparo Industries plc v Dickman2, further limits were placed on proximity to restrict the number of people eligible to claim. The defendant must
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