Tort Recovery for Negligently Inflicted Economic Loss: A Reassessment

The problem of economic loss as a result of negligence is examined in relation to tort compensation. This article looks at the case law regarding this problem, in particular J'Aire Corp. v. Gregory 24 Cal. 3d. 799, 598 P. 2d 60, 157 Cal. Rptr. 407 (1979) which is generally regarded as the major pronouncement of the California Supreme Court on economic loss in tort. It then gives an historical perspective of negligent infliction of economical loss and finally examines the reasons for the reluctance of the courts to extend liability for economic loss.