Economic Loss

What is Economic Loss in Tort Law?

Economic loss refers to financial damage suffered by a person or business, which is not accompanied by any physical injury or property damage. It often involves lost profits or additional expenses.

Quick Definition

Economic loss is the financial detriment that occurs without any accompanying physical harm to a person or property. It can be challenging to recover in tort law unless specific conditions are met.

In Context

Economic loss is a critical concept in negligence cases, particularly where a claimant seeks compensation for purely financial harm. A landmark case is Hedley Byrne & Co Ltd v. Heller & Partners Ltd (1964), where the court recognised that a duty of care could exist in cases of negligent misstatement, allowing recovery for economic loss if there is a special relationship between the parties. This case illustrates the complexities involved in claiming economic loss in tort law.

See Also

• Negligence

• Duty of Care

• Negligent Misstatement

Learn More

Discover more about economic loss and its implications in tort law with our Tort Law Notes for detailed case law, examples, and revision tips.