Pure Economic Loss in Canadian Negligence Law

Finally, Canadian tort and contract lawyers have a new resource to consult on claims in negligence for pure economic loss. Written by law professor Russell Brown, this book comprehensively deals with this complex and often confusing area of Canadian law.

This is the first book devoted solely to examining Canadian case authorities and the unique problems that arise from them. It also introduces a new innovative macro-organizational structure for understanding pure economic loss. In doing so, the book brings new insight, explanations, and ways of looking at this complicated subject area.

The First of Its Kind

• The duty of care analysis in Canadian law concerning pure economic loss has become extraordinarily complex and in some respects is not being stated or applied consistently at the Supreme Court of Canada from case to case
• Therefore, there is a real need for a book devoted solely to examining the Canadian case authorities and the unique problems that arise from them. This is that book

A New Perspective

• This book adopts a new macro-organizational structure for understanding pure economic loss: First, the subject area is divided into two parts, with each part corresponding to one of the two bases for recognizing a duty of care in negligence law. Those bases are: (1) the physical loss basis and (2) the reliance loss basis
• Second, each of the four categories of pure economic loss is assigned to one of those two parts (Relational Economic Loss and Loss of Bargain Arising from Defective Products or Building Structures fall under the physical loss basis, while Negligent Misrepresentation and Negligent Performance are consigned to the reliance loss basis)

A "First Principles" Approach

• This book brings a "first principles" approach to the question of recovery for pure economic loss, by considering the source and quality of the legal rights that claimants are asserting
• Lawyers and judges think about their cases every day in terms of parties' legal rights, but yet that reference point of legal rights - which has shaped most of tort law - has, until now, been absent from most discourse regarding claims for pure economic loss.

Other Unique Features

• Serves dual purposes - this book provides an account of the current state of the Canadian law of pure economic loss, as well as an account of the strengths and weaknesses of that current state. The book functions as both a reference text and a scholarly critique.

• Useful to both contract and tort lawyers

• This book not only carefully reviews the leading authorities on concurrent liability in contract and tort, but also identifies trends in the case law away from concurrent liability. At the same time, it offers a principled argument for concurrent liability, within certain limits.
• Particular attention is given to the tricky area of pre-contractual misrepresentations, including the different factors that influence the tort measure of damage in those cases.

Who Should Read This Book?

• Practitioners - a valuable reference guide for litigation lawyers working on cases involving negligently caused economic loss (including relational economic loss, loss of bargain arising from defective products or building structures, negligent misrepresentation and negligent performance of a service)
• Judges - this area of law is characterized by conflicting decisions from both trial and appellate courts; this text helps to explain and clarify an extremely complex and often conflicting area of law
• Law professors and legal academics - drawing from leading torts scholarship, this text challenges some of the prevailing thinking about whether and when pure economic loss is recoverable.
• Law libraries - a valuable addition to any collection of works on the law of negligence and economic loss
• Accountants - this text carefully examines and critiques the leading Canadian cases on the liability of accountants for loss arising from reliance upon negligently prepared financial statements
• Insurers and Insurance Brokers - this text considers the latest Canadian cases on third-party coverage against claims for pure economic loss, as well as cases brought against brokers for failing to place coverage