Application of the Civil Liability Act and Pure Economic Loss

3B Civil liability excluded from Act (1) The provisions of this Act do not apply to or in respect of civil liability (and awards of damages in those proceedings) as follows: (a) civil liability of a person in respect of an intentional act that is done by the person with intent to cause injury or death or that is sexual assault or other sexual misconduct committed by the person—the whole Act except: (i) section 15B and section 18 (1)(in its application to damages for any loss of the kind referred to in section 18 (1) (c)), and (ii) Part 7 (Self-defence and recovery by criminals) in respect of civil liability in respect of an intentional act that is done with intent to cause injury or death, and (iii) Part 2A (Special provisions for offenders in custody)

5A Application of Part: (1) This Part applies to any claim for damages for harm resulting from negligence, regardless of whether the claim is brought in tort, in contract, under statute or otherwise. (2) This Part does not apply to civil liability that is excluded from the operation of this Part by section 3B

Two Scenarios

Pure Economic Loss Scenarios 1. As a consequence of material damage done by the defendant to a third party (eg: Caltex Oil (Australia Pty Limited v The Dredge “Willemstad” (1976) Johnson Tiles Pty Limited v Esso Australia Pty Limited [2003] VSC 27(consequential loss) 2. When a plaintiff purchases a defective building from a previous owner and the defendant is the builder (transferred loss) 3. Economic loss caused by negligent performance of legal services that a third party contracted for 4. Relational – where plaintiff has relationship to someone who suffers personal injury and they suffer loss as a consequence

Personal injury damages Pecuniary Losses Loss of earning capacity (including loss of competitiveness in job market) Cost of care (past and future) Loss of marriage prospects Gratuitous care (Griffiths v Kirkemeyer) Loss of ability to provide gratuitous care for others Expenses incurred by third parties Non – Pecuniary Losses General damages Loss of amenities Loss of expectation of life Loss of sexual function