Pure economic loss
What are Pure Economic losses?
Pure economic loss is the financial harm or loss that a person or entity experiences without any accompanying damage to property or physical injury. This legal concept recognizes the economic consequences suffered by someone due to the omissions or actions of another party, even though there is no direct physical impact.
What are the Different Types of Pure Economic losses?
Pure economic loss damages can include:
Loss of Profits
When a business suffers financial losses such as contractual breaches, negligent advice, or defective products, it may result in lost profits.
Loss of Investment Opportunities
When making an investment decision, if someone relies on fraudulent representations or misleading information and incurs financial losses, it can be considered pure economic loss.
Interference with Economic Relationships
If a person's economic relationships are negatively impacted by someone's negligence, resulting in financial harm, it can be classified as pure economic loss.
Professional Negligence
When professionals fail to meet the expected standard of care, and their advice or actions lead to financial losses, it falls under pure economic loss.
Failed Contracts
If a party breaches a contract that results in financial losses for the other party, the damages suffered would typically be classified as pure economic loss.
Is there a difference between economic loss and pure economic loss?
Economic loss refers to the financial loss that someone suffers because of someone else's mistake or a broken contract.
Pure economic loss specifically refers to financial harm without any physical injury or damage to property.
What is the pure economic loss rule in torts?
The pure economic loss rule in torts restrict the recovery of damages for purely economic losses in the absence of physical injury or property damage.
What is an example of pure economic loss?
Pure economic loss can involve a situation where a negligent misstatement made by a professional causes financial harm. For example, if an accountant gives poor or inaccurate financial advice that results in substantial financial losses for a person or business, it would be considered a case of pure economic loss.
How Can an Attorney Help Me Obtain Compensation?
A personal injury lawyer at MVP Accident Attorneys will build a strong case on your behalf, gathering evidence and consulting experts if necessary. Our legal team will negotiate with the responsible party's insurance company to secure a fair settlement for pure economic losses.
If a settlement cannot be reached, an attorney on our legal team will represent you in court. They will present your case before a judge or jury and seek a favorable verdict including compensation for your pure economic loss.
Contact Us Today!
If you were involved in an accident that was caused by negligence, contact a personal injury lawyer at MVP Accident Attorneys today and schedule a free consultation to discuss your case.
At a consultation, you can meet with our legal team, have all of your questions answered, and learn how we can help you recover the compensation you deserve for the harm you have suffered.
Author
Brett Sachs
Brett S. Sachs graduated from Michigan State University College of Law with Cum Laude Honors. While attending Michigan State, Brett was awarded for his service in the Michigan State University College of Law Civil Rights Clinic, where he represented prisoners of the Michigan Department of Corrections from injustices brought upon them. Learn more.
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