The Study On Recognization Of Causation In The Indemnity To Pure Economic Loss

Due to its awkward position, pure economic loss has always been restricted from being compensated by torts law. Admittedly, traditional torts law places particular emphasis on the protection of absolute rights, such as personal rights and proprietorship, for its outstanding effect of demonstration and coincidence with social regulation, which has been accepted in a wide range. On the contrary, that the economic interest is hard to be detected leads it’s being unacceptable to indemnifying the pure economic loss; meanwhile, there lacks a universal consensus on the indemnity of the pure economic loss as on absolute rights. However, along with the social development and boom of mutual economic activities, the value of economic interest is nothing less than of absolute rights; thus the indemnity to the pure economic loss presents the general trend. On the other hand, in light of intricate relations between economic activities, fault and causality, traditional methods for restricting liability of damage, could be used to confine the overflowed liabilities potentially caused by the indemnity of the pure economic loss.From the view of causation, this paper targets the indemnity of the pure economic loss and the restriction of overflowed liabilities as well. The essential element for causation is the recognization; while, the target of restriction will barely to be achieved if we still take the traditional adequate causation, originating from the Continental Law System, as the criterion to recognize causation. Accordingly, on the basis of comprehensive analysis on the way of solving such plight in other countries, the paper maintains that adequate causation theory can be used to judge the causality between tortious action and damage; if this element is set, we should further judge whether the pure economic loss, caused by tortious action, belongs to the scope covered by the corresponding law which has violated by tortious action; if the answer is positive, the causation between tortious action and the pure economic loss has set up, victim could acquire the indemnity within the scope of law.The paper contains four parts. The first chapter gives an extensive analysis on the concept of pure economic loss, a discussion on an assortment of theory about recognization of causation, and the drawbacks of the traditional theory in the process of recognizing causation, which contributes to underline the function of causation in the indemnity of pure economic loss. The second chapter, from comparative law, lists ways of France, Greece, Britain, and Holland in the same cases, concluding that the criterion of causation in the indemnity of pure economic loss should take adequate causation and whether the scope of law contains the damage caused by tortious action into account. The third chapter discourses views of scholars at home and abroad on the indemnity of pure economic loss for classing the features of cases of pure economic loss and sustaining the essence of the paper. The fourth chapter uses cases, "the null and void testament" and "cable case", to analysis the adaption of view that author holds.