The Study On Pure Economic Loss Compensation

With the development of market directed economy and the dramatic change ofconnections between social subjects, the damages due to improper acts are graduallypresented in the form of injures of economic interest. The pure economic loss is a typicaldamage of economic interest. It refers to the victim’s monetary loss due to others’ definiteacts and the loss is not the result of the violation of the victim’s absolute rights orcreditor’s rights. As this kind of loss, when it happened, has great chain effect and manyuncertain factors, any compensation to this may lead to infinite extension of responsibility.Nevertheless, no compensation at all would injure the fairness and justice of law.Therefore, the issue of compensation for pure economic loss has been an unavoidableproblem in the researches of law.The European countries have been exploring hard on this issue and have formed threetypical handling models, the practical system represented by UK, the conservative systemrepresented by German, and the Lassea-faine system represented by France. These threepatterns offer referential experience for the compensation on pure economic loss in China.In the Tort Law enacted in2009, the terms of general infringement acts are similar to thosein France. The pure economic interest is recognized by law as a civil right. However, theacademic generally believe the protection of pure economic loss should not reach the samelevel as the absolute rights, and with the current law structure, the liability should becontrolled within a reasonable scope through the legal techniques.In fact, our country doesn’t possess the conditions to take the French pattern asreference. One of the reasons is that as China allows competition and cooperation ofliabilities for breach of contract and for tort, adopting the French pattern would lead thecontract law evade to the tort law. Another reason is that the general quality of the judgesin China decides that judges cannot be given too much freedom to the discretionary power.We can purposely limit the terms of general tort acts in the Tort Law, establish thespecially organized and protective law, and set up the legal protection of pure economicloss of deliberate violation of customs. In the meantime, we should prepare theaccumulation of categorization of pure economic loss, conclude new compensable patternaccording to social needs, and wish that the legislative office can make immediate andwell-organized plan on the compensation for the pure economic loss.