In what scenario can a claimant recover purely financial losses?

In situations involving loss recovery in tort, a claimant can recover purely financial losses if there is a special relationship between the parties. This principle arises from a necessity of establishing a duty of care that goes beyond mere negligence. The concept of a special relationship can be understood in terms of proximity and reliance; for instance, where one party relies on the expertise or information provided by another party, establishing both a connection and an expectation that such information will be relied upon.

Such a relationship can manifest in business contexts, where, for example, a professional advisor (like an accountant or lawyer) has a specific duty to provide accurate advice to a client. In these cases, if loss results from reliance on that advice, the claimant may pursue recovery of purely financial losses, as they stem directly from the special relationship formed.

The other scenarios, while they may indicate circumstances under which financial losses occur, do not align with the legal principles that govern the recovery of purely financial losses. The role of foreseeability plays a part in determining liability in negligence cases, but on its own, it does not establish the necessary legal grounds. Likewise, the status of the defendant (private individual or otherwise) does not change the need for that special relationship in claiming purely financial losses. Informal