The Basis for Excluding Liability for Economic Loss in Tort Law

Abstract

Abstract This chapter focuses on the so-called exclusionary rule and the basis for excluding liability for economic loss in tort law. It examines five different situations into which economic loss cases can be divided. The first ‘exclusionary’ situation is typified by circumstances where the defendant damages something in which the plaintiff may have a contractual interest (or something else that is less than a possessory or proprietary right) and this impairs the plaintiff’s interest, causing him financial loss. The two other ‘non-exclusionary’ situations are where the plaintiff’s financial loss arises through a special relationship of justified detrimental reliance by the plaintiff on the defendant, and where it results from the defendant’s intentional interference with the plaintiff’s contract with a third party.

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