economic torts

The general rule is that the law of torts compensates non-economic loss, such as personal injury, damage caused to property and loss of reputation by way of damages. Economic torts are exceptional torts in that the law recognises pure economic loss and awards damages for that loss.

The economic torts are:

1. Conspiracy;
2. Interference with contractual relations;
3. Procuring breach of contract;
4. Unlawful interference with trade;
5. Abuse of process; and
6. Procuring breach of statutory duty.

In D. Pride & Partners v Institute for Animal Health, Mr Justice Tugendhat sitting in the Queen’s Bench Division of the High Court explained:

The law provides causes of action by which aggrieved claimants can claim compensation for loss and damage. But the law distinguishes between, on the one hand, physical damage (and economic loss consequential upon physical damage) and, on the other hand, economic loss which is not consequential upon physical damage, commonly known as pure economic loss. The law of contract provides one, and perhaps the main, cause of action for claims for pure economic loss. The torts commonly referred to as the economic torts require greater culpability than negligence, and they provide other causes of action for claims for pure economic loss. The tort of wrongful interference with goods provides another cause of action by which pure economic loss may be recoverable.”

The law of contract is usually the means by which a person recovers pure economic loss.