Liability for Economic Loss Arises in Negligence Cases Using Case Law

LIABILITY FOR
ECONOMIC LOSS ARISES
IN NEGLIGENCE CASES
USING CASE LAW TO
ILLUSTRATE YOUR
ANSWER

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Emergence of liability in case of negligence through the illustration of case law..................3
2. Damages that can be claimed in case of negligence of Peter..................................................4
3. Liability of whom for Peter’s negligence, if he was working for Kitchen – Quick Kitchen
fitters............................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Tort can be defined as a civil wrong which results in claim from a plaintiff due to
suffering from a harm or loss which in return creates liability in legal sense for another person
against whom the claim has been made by the plaintiff for their tortious act. It includes financial
losses, emotional distress, negligence, invasion of privacy and injuries along with many other
things. The person committing the tortious act is known as tortfeasor and the plaintiff in this
regard is known as injured party. In this report, the main discussion will revolve around the
emergence of liability in the cases of negligence and damages that an injured party can claim due
to the commitment of negligence along with the person on whom liability will be imposed in
such negligence case.
MAIN BODY
1. Emergence of liability in case of negligence through the illustration of case law
In case of negligence, the tort involve is of an unintentional nature, where a lack of action results
in the personal damage and injury. Here the tortfeasor can claim in the law of court that he has
acted unreasonably by disregarding the well – being and safety of the other party. Therefore, the
tortfeasor is liable towards the injured party under the law of tort. The certain liability discussed
under the tort law pertaining to negligence are as follows:
 Product liability: Liability arise of any or all those involved in the chain of
manufacturing of certain product which leads to the damages caused to the party
obtaining it1. Claim can be made in respect of product liability when there is a
negligence, strict liability as defined under the tort law and also when there is a breach of
warranty.
 The events in which product liability arises are as follows:
 When defendant undertake to sale product or service to the plaintiff and the latter
has made payment in this regards.
 The defendant should be a commercial seller of the product.
 The plaintiff should suffered from an economic loss.
 The item should be defective at the time it was sold.
 The proximate and actual cause of the economic loss should be one resulting from
that defect which was present at the time of sale.
 The liability arises when the loss was resulting from the product and it could
never be a pure economic on nature but only the monetary losses arises due to the
sale of the product.
 Defects due to which liability arises are as follows:
 Design defects: Such type of defects are considered to be an inherent and it was
existed before the product was actually manufactured2. Due to the flaw of the
design, it could be unreasonably harmful or dangerous to use despite of the fact
that it is serving the purpose well.
1 Abbasi, M. and Parsa, E., 2019
2 Basten, J., 2018