Acing the SQE/Tort Law

claims for pure economic loss arising from either a negligent act or misstatement
Generally, a person is only liable for the direct physical harm caused by their negligence. However, in some circumstances, a person may be liable for pure economic loss arising from either a negligent act or misstatement.


 * 1) Negligent act: In cases where the negligent act itself causes physical damage or personal injury, a person may also suffer economic loss as a result. For example, if a building contractor negligently constructs a building and as a result the building collapses, the owner of the building may suffer economic loss, such as loss of rent or the cost of repairs. In such cases, the owner may be able to claim compensation for pure economic loss.


 * 1) Misstatement: A person may also be liable for pure economic loss arising from a negligent misstatement. A negligent misstatement is a statement made by a person who owes a duty of care to another person, which is incorrect and causes economic loss to the recipient of the statement. The duty of care may arise from a contractual relationship, a professional relationship or the assumption of responsibility by the maker of the statement. For example, if an accountant negligently provides incorrect financial advice to a client and as a result, the client suffers economic loss, such as a loss of profits, the client may be able to claim compensation for pure economic loss.

claims for psychiatric harm
The claimant must have a close tie of love and affection with the victim of the event and claims for pure psychiatric harm (i.e. harm not accompanied by physical injury), the claimant must be able to demonstrate that they fall within a recognized category of individuals who are owed a duty of care in such cases.

contributory negligence
Contributory negligence is a legal principle that reduces the amount of damages that a claimant may be awarded if they have contributed to their own injury or loss through their own negligence. In other words, if the claimant's own actions or failure to act played a role in causing their injury or loss, the amount of damages that they may be awarded may be reduced to reflect their own fault. In order for contributory negligence to apply under English law, the claimant's negligence must actually contribute to the damage.

Principles of vicarious liability
The "sufficiently close connection" test determines whether an employer can be held vicariously liable for the tortuous (wrongful) acts committed by its employees. The test is applied to establish whether there is a sufficient connection between the employment and the tort so that it is just and reasonable to impose liability on the employer.

public and private nuisance

 * 1) A public nuisance arises from an act that endangers the life, health, property, morals or comfort of the public or obstructs the public in the exercise or enjoyment of rights common to all. A public nuisance is actionable in tort and can also be a criminal offence.


 * 1) A private nuisance usually is caused by a person doing something on his own land, which he is lawfully entitled to do but which becomes a nuisance when the consequences of his act extend to the land of his neighbour by, for example, causing physical damage. A private nuisance is actionable in tort.

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the rule in Rylands v Fletcher
This is a form of strict liability, in that the defendant may be liable in the absence of any negligent conduct on their part.