The Boundary-Line Function of the Economic Loss Rule

Tort scholars and jurists have recently focused on what is often called "the economic loss rule" in an effort to resolve its uncertainties. According to some authorities, the rule holds that tort law offers no redress for negligence that causes only economic losses unaccompanied by personal injuries or property damages. However, whether a rule so expansive is part of American tort law is still open to doubt. There are many variations of the rule, and courts often discuss its dictates only in relationship to products liability or contractual performance. As one scholar remarked, the law of tort liability for purely economic losses is "much less well settled and less uniform than one might wish it to be.