The Economic Restatement Of Pure Economic Loss Rule

The economic loss rule,traditionally states that,the plantiff cannot recover damages for a pure financial loss.However,in current European legal systems,more and more country tend to permit the recovery to the pure economic loss,and they are not unianimous on the issue that whether the pure economic loss should be compensated. The traditinal pure economic thoery cannot properly explain the distance between the reality and the textbook.Therefore,this paper attempts to revisit the pure economic rule from the economic view point,and restate the exclusionary rule through the economic ananysis lens. Comparaed with the old thoeries,the new statement could reflect the current tendency of judical pragmatism better,and explain the unsettled problems which were left by the old one.Combining the new statement and the optimal liability rule,will provide a good chance to pursue the maximum of social welfare.At present, "The People's Republic of China Tort Liability Act," has just passed.Its second, sixth and seventh provisions of tort law expanded the scope of the protection of legal interests, pure economic interests apparently also included. But at present the concept of pure economic loss does not exist in China, local courts around the attitudes of purely economic damages are not consistent. So, we can learn from the economic analysis of such cases for our decision making process to establish a relatively uniform criteria, and deal with pure economic loss problem more efficiently.