consider ahouse burning down … Keywords: delict, pure economic loss, wrongfulness, unlawfulness. Pure economic loss arises where a third party suffers a loss without there being injury or damage. Before dealing with policy considerations, Brand JA dealt with the significance of wrongfulness as one of the elements of delict that has to be proven for the extension of delictual liability for pure economic loss. "Hogan Lovells" or the “firm” refers to the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses, each of which is a separate legal entity. The first was the indeterminacy issue that,  "holding contracting parties delictually liable for harm suffered by strangers, flowing from the repudiation of their contracts, would raise the spectre of indeterminate liability to a multiplicity of potential claimants". The general rule is that a defendant does not owe any duty of care to a claimant not to cause pure economic loss. This course builds upon the introduction to Delict provided in LS2025 and LS1536 examines a number of aspects of the law of delict in greater detail. Prior to Administrator, Natal v Trust Bank van Afrika delictual liability was limited as a general rule, to loss resulting from physical injury to a person or property. However there are some cases where this can apply. He stated that "in the case of pure economic loss, wrongfulness performs the function of a safety valve, a control measure, a long stop which enables the court to curb liability where despite the presence of all other elements of the Aquilian action, right minded people will regard the imposition of liability as untenable". Therefore, in general, if pure economic loss is the only damage suffered it is not recoverable. Obviously for a plaintiff to successfully prove a delictual action, the elements of delict should be proven. This means that shareholders are not entitled to recover any such losses. A claim for pure economic loss is based on the negligence of the insured and often happens when the insured denied a third party access to something that the third party utilised to generate an income, or breach of an undertaking that caused financial loss. The SCC majority acknowledged the three categories of pure economic loss that it had previously narrowed in Deloitte & Touche v. Livent Inc. (Receiver of) 3: 1) negligent misrepresentation or performance of a service; 2) negligent supply of shoddy goods or structures; and 3) relational economic loss. Topics will be discussed in a comparative, historical and/or theoretical context. This is the so-called Hedley Byrne principle following the case ofHedley Byrne & Co Ltd v Heller & Partners Ltd [1964] … Only the owner of the property damaged is usually able to sue, in Dynamo v Holland and Hannen and Cubitts, the owner of a factory who lost income due to a power cut caused by an excavator was unable to sue as there was no duty of care. Suggested Citation: Suggested Citation. This was examined further in Caparo v Dickman where shareholders who relied upon a faulty audit in their investment decisions attempted to sue the auditor. This coursebuilds upon the introduction to Delict provided in LS2025 and LS1536 examines a number of aspects of the law of delict in greater detail. The House of Lords furthered this by saying a person can make a claim for pure economic loss as a result of negligent misstatements – providing there is a special relationship between the parties involved. They are generally not recoverable in negligence. This principle was confirmed in AB Ventures Limited v Siemens Limited, which followed the decision of Lillicrap. In essence, it is a loss that is purely financial. The Aquilian action has reached its end development in South African law, where compensation for negligent misrepresentation may be claimed ex lege Aquilia. 2020_SEMESTER 1 Delict PVL3703. Now, however, patrimonial loss also includes monetary loss resulting from injury to the nervous system and pure economic loss. This can take the form of lost profits, the cost of replacing or repairing a defective building, or the defective item itself. The court stated that there was no reason to extend the Aquilian remedy to rescue a plaintiff who was in a position to avoid the risk by contractual means, but failed to do so. No, it is not generally delict. As such the law places significant limits on the recovery of pure economic losses. The court was called upon to consider the imposition of delictual liability in circumstances that had never been imposed before, namely, where a stranger to a contract has suffered economic loss as a result of the intentional repudiation of the contract by one of the contracting parties. The court was asked to determine liability in delict for so called pure economic loss resulting from a negligent design by structural engineers. Then Judge Brand went on to deal with the policy considerations militating against the imposition of an extension to delictual liability in the matter. Scott, Johan, Delictual Liability for Disturbing the Airwaves – The Law of Delict Moving into the 21st Century. In Country Cloud the court was called upon to decide whether such factors existed for the extension of delictual action for pure economic loss. Delict is a term in civil law jurisdictions for a civil wrong consisting of an intentional or negligent breach of duty of care that inflicts loss or harm and which triggers legal liability for the wrongdoer; however, its meaning varies from one jurisdiction to another. Employers are not owed a duty of care regarding their employees, as shown in Reavis v Clan Line Steamers Ltd; Ms Reavis employed an orchestra who sailed with Clan Line Steamers, she was unable to claim for loss of earnings from the orchestra. financial damage suffered as the result of the negligent act of another party which is not accompanied by any physical damage to a person or property It must be determined in each case whether, according to the circumstances, there was a legal duty to avoid pure economic loss. Itzikowitz v Absa Bank Ltd (20729/2014) … Quickly memorize the terms, phrases and much more. Avizandum is a FANDOM Lifestyle Community. 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