The Boundary-Line Function of the Economic Loss Rule

Abstract

The 'boundary-line function' of the economic loss rule is a principle often invoked by courts and scholars, but rarely subjected to critical analysis. This article is the first work to focus on this topic outside of the product liability context and to examine it in detail. The article presents a coherent view for interpreting the economic loss rule that is rooted in public policy principles defer to actual private ordering, but that do not otherwise preempt resolution under tort principles of disputes involving purely economic losses.

Keywords: torts, contract, pure economic loss