What types of per economic loss are recognised by Australian courts?
A. One type of pure economic loss is the defective quality of property which has reduced its value or utility. The High Court of Australia has held that a defect in the construction of a house may properly be the subject of a duty of care, as the economic injury in question is relevantly indistinguishable from property damage. There also appears to be no reason why manufacturing or design defects in goods could not also give rise to a common law duty of care in negligence. Another form of pure economic loss may be the loss of use of another’s property usually associated with damage to that property. The loss of another’s services may well be a type of pure economic loss recognised by Australian courts. If the right to another services derives from that other person, there is no reason or policy why a duty of care would not be recognised under Australian law. However, the relationship between the plaintiff and the third person must be an economic one, and not merely a personal or family
