Frank Stewart Dethridge Memorial Address 1994: Pride and Precedent - Economic Loss: The Search for a New Bright Line

Abstract

In this address, Sheller looks at one of the categories of pure economic loss as identified by Professor Feldthusen, this being relational economic loss, which occurs where the plaintiff's economic loss is casually linked to damage by the negligent wrongdoer - not damage done to the plaintiff's person or property, but to the property of another party or to a public resource. Sheller asks whether the plaintiff should be able to recover for this kind of loss, and where the line should be drawn to limit the extent of the wrongdoer's liability, taking both certainty and justice into account. In considering these questions, Sheller reviews cases on the topic from various common law jurisdictions (such as the US and Canada), particularly Australia. Sheller concludes that the traditional exclusory bright line for pure economic loss must be reconciled with community-driven reform, and that there is still work to be done in developing new and predictable formulas for the just and reasonable compensation of pure economic loss in Australia.

This copy of the address was originally published in Volume 10, No 2 of the MLAANZ Journal (1994).