LAWS1003 Chapter Notes - Chapter 10: Exclusionary Rule
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It is very difficult to establish that a duty is owed in regard to a loss which is solely economic, and not consequential upon physical damage. This latter ki(cid:374)d of har(cid:373) or da(cid:373)age is (cid:272)alled (cid:858)pure e(cid:272)o(cid:374)o(cid:373)i(cid:272) loss(cid:859) a(cid:374)d it is o(cid:374)l(cid:455) in special circumstances that a common law duty of care will be recognised for this kind of loss. The refusal of the common law to recognise that a duty of care could be owed (known as the (cid:858)e(cid:454)(cid:272)lusio(cid:374)ar(cid:455) rule(cid:859)) is (cid:271)ased upo(cid:374) poli(cid:272)(cid:455) (cid:272)o(cid:374)sideratio(cid:374)s, i(cid:374)(cid:272)ludi(cid:374)g the fear of indeterminate liability and of unascertainable classes of plaintiffs. Claims in negligence for pure economic loss may be categorised as follows: A person who causes pure economic loss to another may owe a duty of care to that other person if the pure economic loss is causally related to physical damage to the property of a third party. Calte(cid:454) oil (cid:894)australia(cid:895) pt(cid:455) ltd v the dredge (cid:858)wille(cid:373)stad(cid:859) (1976) 136 clr 529.
