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Limitations On Liability For Economic Loss Caused By Negligence: A Pragmatic Appraisal, Fleming James, Jr.

Vanderbilt Law Review

Even if liability for indirect economic consequences of negligence may in some cases be too broad and open-ended to be endured, care should be taken to see whether that is true in all types of situations; if it is not true, one must examine whether a rule may be fashioned to separate the wheat from the chaff. In this discussion it has been assumed that if the pragmatic consideration has any validity, it is in the field of indirect economic loss rather than that of physical damage. As one commentator put it, "only a limited amount of physical damage can …