Spartan Steel v Martin (1973) examines the limits of economic loss recovery in negligence. The defendant’s actions caused a power outage, affecting the plaintiff’s operations. The court distinguished between recoverable consequential losses and non-recoverable pure economic losses.
Distinction Between Economic and Physical Loss: The court differentiated between consequential economic loss directly tied to physical damage (recoverable) and pure economic loss not arising from physical harm (unrecoverable). This highlighted limits on liability in negligence cases.
