Pure Economic Loss

Question 1

Barber Lines (‘85): Damage has to be physical or Property Damage

Answer 1

1. Due to purely prudential reasons the courts cannot let all of these situations to recover.
2. Ex. A simple delay on the highway due to an accident could produce hundreds of lawsuits.
3. Also mention insurance skyrocketing premiums.
4. This would make “Harm within the risk, a nightmare”

Question 2

J’Aire Corp. (‘79): Principles of tort law can limit recovery in economic loss cases better that absolute rule

Answer 2

The principles in tort law of (a) Foreseeability of injuryand (b) Nexus btwn D’s conduct and P’s Injury (c) combined w/Proximate Cause will limit recovery on these cases where;

1. Risk of harm is foreseeable and
2. Is closely connected w/D’s conduct where
3. Damages are not wholly speculative and
4. The injury is not part of P’s ordinary business risk.

Question 3

People Express Airlines, Inc. (‘85): New DOC Doctrine for Econ Loss- Duty of care to Identifiable class of persons

Answer 3

A defendant who has breached his duty of care to avoid the risk of economic injury to particularly foreseeable identifiable class of plaintiffs may be held liable for actual economic losses that are proximately caused by its breach of duty.
1. Identifiable Class Def- Must be particularly foreseeable in terms of the type of persons or entities, the certainty or predictability of their presence, appx. #'s in class, as well as type of econ. expectations disrupted