economic loss
There are legal rules, which restrict recovery of compensation for financial loss which arises without intervening physical damage or personal injury where the only loss is economic.

Easyform Glossary of Law Terms. — UK law terms.

economic loss
in the law of tort or delict, certain claims for non-physical or non-proprietary damage caused negligently. Certain claims, although financial, are usually discounted from such discussion, viz. loss of wages consequent upon physical injury and loss of use following damage to property. The phrase then encompasses other cases where the plaintiff is suing because he has less money than he had before the events complained of. There are, however, two kinds of cases that can be considered under this head, and they must be distinguished. There are primary claims, where the loss to the plaintiff has come directly and without any intervening damage to the person or property of another. Thus, negligent financial or legal advice causes such loss. Other cases are secondary: the plaintiff is poorer but only as a result of the defendant having harmed the person or property of another person, as where the defendant cuts an electricity company's cable but the plaintiff who operates an amusement arcade is poorer as a result. Cases of primary economic loss have the potential to be successful, whereas secondary cases are most likely to fail. Primary cases are governed by the principle in Hedley Byrne v. Heller [1964] AC 465, based on assumption of responsibility for the potential loss. Secondary cases are governed by a long line of authority disallowing recovery based upon contractual and other relations to the primarily injured party. There are exceptions to the non-recovery rule in secondary cases, and that is where the plaintiff has some possessory title like lien or hypothec; in these cases he may sue: see Leigh and Sillivan v . Aliakmon Shipping [1986] AC 785. There are some odder cases that have been allowed, notably White v . Jones [1995] 2 AC 207, in which solicitors were held liable to a disappointed beneficiary when the solicitors failed to give effect to the testator's intentions. The case is unusual because the estate had not been lost when the matter is looked at all round – it went to the wrong person.

Collins dictionary of law. . 2001.

Look at other dictionaries:

  • economic loss — In a products liability action, recovery of damages for economic loss includes recovery for costs of repair and replacement of defective property which is the subject of the transaction, as well as commercial loss for inadequate value and… …   Black's law dictionary

  • Pure economic loss in English Law — English Tort law Part of the common law series Negligence Duty of care Bolam test Breach of duty Causation …   Wikipedia

  • Pure economic loss (England and Wales) — Pure economic loss in English law, arising from negligence has traditionally been limited. Notably, recovery for losses that are purely economic arise under the Fatal Accidents Act 1976; and for negligent misstatements, as stated in Hedley Byrne… …   Wikipedia

  • Pure economic loss — In law, economic loss refers to financial loss and damage suffered by a person such as can only be seen in balance sheets rather than physical injury to the person or destruction of property. Economic loss can be: *Consequential economic loss,… …   Wikipedia

  • Loss of chance in English law — refers to a particular problem of causation, which arises in tort and contract. The law is invited to assess hypothetical outcomes, either affecting the claimant or a third party, where the defendant s breach of contract or of the duty of care… …   Wikipedia

  • Economic torts — are torts that provide the common law rules on liability for the infliction of pure economic loss, such as interference with economic or business relationships.Economic torts protect people from interference with their trade or business. The area …   Wikipedia

  • Economic history of Britain — This is a history of the economy of the United Kingdom and of the countries that joined to form it in 1707 and 1801.Early historyIn Britain s earliest history agriculture was overwhelmingly dominant. The most important export was cassiterite,… …   Wikipedia

  • Economic Profit (Or Loss) — The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for economic value added (EVA). Don t confuse this with accounting profit , which is what most… …   Investment dictionary

  • loss — n 1: physical, emotional, or esp. economic harm or damage sustained: as a: decrease in value, capital, or amount compare gain b: an amount by which the cost of something (as goods or services) exceeds the selling price compare …   Law dictionary

  • Loss given default (LGD) — Loss Given Default or LGD is a common parameter in Risk Models and also a parameter used in the calculation of Economic Capital or Regulatory Capital under Basel II for a banking institution. This is an attribute of any exposure on bank s… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.