Increase the number of long and complex trials burden

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- Increase the number of long and complex trials. Burden on legal system. Statute - Trade Practices Act can be used as well. - Section 80: Can sue. - Section 51: Statements for future can give rise to liability. - Section 52: Misleading and deceptive conduct/trade and commerce (any professional doing something for a reward). - Only 3 years to bring action cf. CL = 6 years. - Lower standard than reasonable person. PURE ECONOMIC LOSS BY NEGLIGENT ACT - Same issue as PEL by statement = concern of indeterminate liability. - Took longer to overcome than statement cases. - No longer an exclusive rule that you can’t claim for PEL by negligent act. There will not always be a duty - it depends on the circumstances of the case. No clear test but use salient features approach. 13
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3 Groups: 1. Damage to another’s property for which the plaintiff would have derived a benefit (Tasman Bridge example/ Caltex / Perry ). 2. Failure of a professional person to perform an undertaking/service properly for a third party ( Hill v Van Erp ). 3. Acquisition of buildings or goods that are defective but don’t cause personal or physical harm. Damage to Another’s Property for Which the Plaintiff Would Have Derived a Benefit 14 Caltex Oil Pty Ltd v The Dredge ‘Willemstad’ (HC 1976) FACTS: AOL would receive materials from Caltex through a pipeline owned by AOL (materials remained AOL’s until they arrived at Caltex). Dredge negligently severed the pipeline. In the interim the companies organised to have materials transported by truck adding a further $950,000 in expenses. AOL wanted to sue for consequential economic loss (from property damage) and Caltex wanted to sue for pure economic loss (pipeline not their property). HELD: They could succeed. Reasonable foreseeability is relevant but not sufficient. Test = reasonable foreseeability and other control mechanism. Stephen - salient features: o Proximity – Tortious act was sufficiently proximate because: They knew the property damaged would cause economic loss to those relying on it . Because of the charts they knew the particular people who would suffer. There was a breech of duty to AOL (owner of the property damaged) they were in a joint venture. Detriment was the loss of use of the property – not more indirect losses. Damages claimed were for loss of use NOT loss of profits. Gibbs and Mason: Reasonably foreseeable + knew specific plaintiff likely to suffer – member of ascertainable class.
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Perre v Apand Pty Ltd (1999 Affirm Caltex ) FACTS: Apand contracted with potato growers to provide potatoes to make potato chips. Apand would supply the seed to be grown. Apand provided Sparton with infected potatoes negligently and illegally. They were proved to have known of the consequences and that they sold to WA. Mistakenly did not check the seeds as usual.
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