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Liability For Pure Financial Loss In Europe: An Economic Restatement, Mauro Bussani, Vernon V. Palmer, Francesco Parisi

Mauro Bussani

As generally understood in the law and economics literature, the economic loss rule states that a plaintiff cannot recover damages for a pure financial loss. The comparative study of the recoverability in tort of pure economic losses, however, reveals that the recognition and significance attributed to the economic loss rule and to the notion of "economic loss" varies considerably across Western legal systems. This paper therefore revisits recent findings of comparative law about the recoverability of pure economic losses, and demonstrates that legal notions of pure economic loss encompass several types of situations, with little or no correspondence with the …