Legal Word of the Day: “Compensable Economic Loss”

Image: DerFussi

Image: DerFussi

Compensable Economic Loss — In Canada, the Supreme Court has upheld the ability to claim in tort for pure economic loss.

The SCC has enumerated five categories of compensable economic loss. These developed with Canadian National Railway Co. v. Norsk Pacific Steamship Co., [1992] 1 S.C.R. 1021, in particular. From that decision: “At issue here is whether or not economic loss, and ‘contractual relational economic loss’ in particular, is recoverable in tort.”

Categories of compensable economic loss identified so far include:

    a. The Independent Liability of Statutory Public Authorities
    b. Negligent Misrepresentation
    c. Negligent Performance of a Service
    d. Negligent Supply of Goods or Structures
    e. Relational Economic Loss

Related Cases:

Rivtow Marine Ltd. v. Washington Iron Works, 1973 CanLII 6 (SCC), [1974] SCR 1189

Wiggins v. WPD Canada Corporation, 2013 ONSC 2350 (CanLII)
Simcoe County landowners sought injunctive relief and compensation against a wind turbine company. Justice Healey: “The plaintiffs’ claim does not fall within any of the five recognized categories that may permit recovery in tort for economic losses.”

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