Can you claim for pure economic loss in negligence?

Examples of pure economic loss The courts are very restrictive in their approach to claims of pure economic loss: the general rule is that ‘pure economic losses’ are not recoverable for the tort of negligence.

What is pure economic loss under negligence?

Pure economic loss is financial damage suffered as the result of the negligent act of another party which is not accompanied by any physical damage to a person or property. This is a form of loss suffered by a claimant that is not consequential due to a result of physical damage to a person or property.

Is pure economic loss recoverable in tort of negligence?

In tort (absent a special relationship between the parties) only those monetary losses which are consequent on damage to property are recoverable; “pure economic loss” is not. A builder does not owe a duty of care in tort for pure economic losses suffered by the building owner.

What is the economic loss rule for negligence?

The rule prohibits the recovery of damages in tort (negligence, strict liability, etc.) when a product defect or failure results in only economic loss but does not cause personal injury or damage to any other property other than the product.

Can you recover pure economic loss?

These two losses are known as “pure economic loss”. They are generally not recoverable in negligence.

How do you prove economic loss?

Generally speaking, economic damages may be proven using supporting evidence such as:

Receipts.
Bills.
Medical documents and other paperwork.
Invoices (especially for mechanic’s repairs, etc.)
Fair market value prices.
Records from similar personal injury lawsuits.

What is the difference between economic loss and pure economic loss?

A purely economic loss is rare, but it can arise from negligent misstatements. By contrast, consequential economic loss stems directly from property damage or personal injury, so it’s much more common. Also, to qualify as consequential economic loss, the damage or injury must occur to you, not to someone else.

What is the economic loss rule?

A judicially created doctrine, the Economic Loss Rule, shields a party from tort liability when damages are purely economic and without accompanying personal injury or property damage. The extension of this rule to construction cases operates to avoid a party’s unfettered liability for tort damages.

What are examples of economic loss?

Examples of pure economic loss include the following: Loss of income suffered by a family whose principal earner dies in an accident. The physical injury is caused to the deceased, not the family. Loss of market value of a property owing to the inadequate specifications of foundations by an architect.

What did the Fatal Accidents Act 1976 do?

The Fatal Accidents Act 1846 had allowed claims for damages by the relatives of deceased persons for the first time. The 1976 Act modernised the process and repealed earlier legislation.

Which is a consequential economic loss in negligence?

Heller. On the other hand consequential economic loss results directly from personal injury or property damage. So as, if you negligently cause me to break my leg and can’t work for two weeks, the economic loss I suffer as a result of being unable to work is consequential economic loss.

Can a personal injury claim be considered a consequential loss?

It’s important for courts to determine whether a claim is considered pure economic loss or consequential because pure economic loss is not recoverable as damages under current law. In a personal injury claim where the defendant is accused of negligence, the claimant may sustain an economic loss due to being unable to resume work.

Can a claim for personal injury represent pure economic loss?

In a claim for personal injury following negligence of the defendant, the claimant may be unable to resume work suffering a loss of earnings which is a usual head of damage. We can see that this is clearly a product of personal injury thus representing consequential loss not pure economic loss.

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Can you claim for pure economic loss in negligence? Examples of pure economic loss The courts are very restrictive in their approach to claims of pure economic loss: the general rule is that ‘pure economic losses’ are not recoverable for the tort of negligence. What is pure economic loss under negligence? Pure economic loss is…