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LSDefine

Simple English definitions for legal terms

economic-harm rule

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A quick definition of economic-harm rule:

The economic-harm rule, also known as the economic-loss rule, is a principle in tort law that states a plaintiff cannot sue for purely monetary loss caused by the defendant, unless there is fraud or negligent misrepresentation involved, or a special relationship exists between the parties. This means that if someone suffers financial loss without physical injury or property damage, they cannot sue for compensation. However, there are exceptions to this rule in certain circumstances.

A more thorough explanation:

The economic-harm rule, also known as the economic-loss rule or economic-loss doctrine, is a principle in tort law that states a plaintiff cannot sue to recover purely monetary loss caused by the defendant, without physical injury or property damage.

For example, if a company purchases a defective product that causes them to lose money, they cannot sue the manufacturer for economic loss under the economic-harm rule. However, there are exceptions to this rule, such as when the defendant commits fraud or negligent misrepresentation, or when a special relationship exists between the parties.

One way the courts have attempted to distinguish between tort and warranty is by using the economic-harm rule. This common law doctrine has achieved the status of the economic-loss doctrine in some states, meaning that once loss is defined as economic, it cannot be recovered in negligence or strict tort, and perhaps not in fraud or misrepresentation.

For instance, if a contractor builds a house with a faulty foundation, and the homeowner suffers economic loss due to the cost of repairs, they cannot sue the contractor under the economic-harm rule. However, if the contractor knowingly concealed the foundation's defects, the homeowner may be able to sue for fraud or negligent misrepresentation.

Overall, the economic-harm rule limits a plaintiff's ability to recover purely monetary loss in tort law, but there are exceptions to this rule in certain circumstances.

economic frustration | economic indicator

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[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
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