Legal Dictionary of Pakistan

economic-loss rule

Torts. The principle that a plaintiff cannot sue in tort to recover for purely monetary loss - as opposed to physical injury or property damage - caused by the defendant. ( Many states recognize an exception to this rule when the defendant commits fraud or negligent misrepresentation, or when a special relationship exists between the parties (such as an attorney-client relationship). - Also termed economic-harm rule; economic-loss doctrine."One way the courts have attempted to draw a line between tort and warranty is to bar recovery for 'economic loss' in tort. In some states this common law doctrine has achieved the status of the 'economic loss doctrine,' meaning that once loss is defined