Relational Economic Loss

Legal factors to be considered (Perre v Apand):

1. Reasonable foreseeability
2. Indeterminate liability
3. Autonomy/Commercial Freedom of the defendant
4. Vulnerability of the plaintiff
5. Knowledge of risk (1-5 per McHugh J)
6. Conflict (Gaudron J)

Cures for indeterminacy (if the facts of the case include one or more of these, it will be easier to establish a duty of care):

• Knowledge of an ascertainable (and specific?) class-
• Plaintiff is a ‘first line’ victim- McHugh J in Perre
• Transferred loss- McMullin (contract, owner of property damaged suffered no loss)
• Joint venture between P and party whose property was damaged- Fortuna Seafoods
• P’s property or person threatened- Caltex