Reconstructing the Taiwanese Rule on Pure Economic Loss: Establishing a General Standard for Recovery for Pure Economic Loss in Unintentional Torts

An important issue in Taiwan today is whether pure economic loss can be recovered as a right under the former part of first paragraph of Article 184 in Civil Code of Taiwan, thereby making it recoverable in unintentional torts. Contrary to most scholars in Taiwan, this Thesis argues that 1) pure economic loss should be a recognizable harm under the former part of first paragraph of Article 184; and 2) economic loss should be considered on a category-by-category basis, rather than the traditional all-or-none basis presently used in Taiwan. Traditionally, two arguments are made against recovery for pure economic loss in Taiwan. First, it creates an unnecessary conflict between tort law and contract law. Second, it potentially creates indeterminate liability for the defendant. Based on practices with pure economic loss in foreign jurisdictions (particularly the United States), however, both concerns can accommodated. This Thesis argues that Taiwan should adopt, by statute, a category-by-category approach for recovery for economic harm as the best way to protect rights of innocent victims without risking indeterminate liability for defendants