Q : Can you be held liable for economic loss suffered because of your reference?
(ie, if you give bad statement (reference) about an employee of yours, and because of that, he isn't hired by other companies, can you be held liable)
- D made a statement that implied the CL is of no integrity and a dishonest person.
HELD : D owes a duty of care to his employee because of his negligent misstatement.
Pure Economic Loss
Usually, courts would allow claims on consequential economic loss rather than pure economic loss.
- Mrs Dutton, the claimant suffered a financial loss because of the 'defect' in the foundations of the property due to the negligent inspections carried out by the inspector of Bognor Regis UDC.
- After appealing, Mrs Dutton won the case because:
1) There was a threat of injury to health & safety
Q: If the defective property was merely of low quality, and not dangerous to health, would there be liablity?
No
