Pure economic loss : is it compensable under our law of tort?

Abstract

Pure economic loss is one of the most discussed and controversial legal issues in Europe, raising complex questions which affect the law of tort, and even the law of contract. How far can tort liability expand without imposing excessive burdens upon individual activity? Are there common principles, policies and rules governing tortuous liability for pure economic loss in Europe? This comes as more interesting within the Maltese legal system, which system itself already shares common aspects from jurisdictions, coming from all the three types of currents which shape the thought of pure economic loss of the day. How does Malta feature within this divide? Where does it stand on the subject of pure economic loss? Following an analytical introduction to pure economic loss, the systems of the countries which influence the Maltese scenario are considered and compared, to see how they deal with the same practical problem, highlighting similarities and differences in a range of comprehensive issues, setting the stage, to a later scrutiny of the Maltese position. Indeed the Maltese multi-perspective experience within this ambit, might have a lot to be inspired from, but might also have a lot to teach.