Economic Loss - Tort Law
In looking to consider whether a claimant may seek to claim recompense for their economic loss, it is to be appreciated that the policy of the courts has been, and remains, to disallow claims for ‘pure economic loss’. Therefore, with this in mind, if the loss suffered is connected with physical damage to property belonging to the Claimant; or connected with injury to the person of the Claimant. Consequently, even if the loss is financial - it is not pure economic loss and is recoverable, according to the decisions in Cattle v. Stockton Waterworks Co (1875) LR 10 QB 453 and S.C.M Ltd v. W.J. Whittall [1971] 1 QB 344.
But economic loss can be claimed for in the sense of ‘financial loss’ where the loss is foreseeable and consequential upon physical damage to property in which the Claimant has a proprietary interest, supported by the decision in Murphy v. Brentwood D.C. [1991] AC 398.
