Liability for Pure Economic Loss: Rule or Exception? A Comparatist's View of the Civil Law - Common Law Split on Compensation of Non-physical Damage in Tort Law

Abstract

In tort law 'pure economic loss', in the absence of physical damage caused to the plaintiff, is a complicated concept, and liability is difficult to establish (eg false information, negligent services, or 'cable' cases). Under civil law liability is accepted in principle, although with exceptions, whereas in common law this kind of damage traditionally is rejected, and accepted in exceptional cases only. This situation, however, is changing rapidly in the former British dominions. The discussion includes policy issues, such as the 'floodgates' argument and the modern use of old concepts as negligence and causation.