Commencing in 2010, the Restatement of the Law Third, Torts: Liability of Economic Harm is part of ALI’s ongoing revision of the Restatement Second of Torts. Portions of the Restatement Second have been superseded by the Restatement Third of Torts: Products Liability, Apportionment of Liability, and Liability for Physical and Emotional Harm.

Recovery and tort for economic loss has been a growth area in American law over the last few decades. There’s been a lot of judicial commentary and a lot of scholarly commentary on when it ought to be possible to recover in tort for a pure economic loss. Our goal in this Restatement has been to capture the best insights of the commentary while staying true to where the case law has been going.” – Ward Farnsworth, Project Reporter

This Restatement covers unintentional infliction of economic loss, including professional negligence, negligent misrepresentation, negligent performance of services, and public nuisance. It also addresses fraud, breach of fiduciary duty, interference with contract, unjustifiable litigation, and civil conspiracy.

Economic Loss Doctrine

Project Reporter Ward Farnsworth discusses economic loss in the Economic Harm Torts video below. One of the achievements in this project so far that I’m most pleased with is that I think it’s brought a lot of clarity to the so called economic loss rule or...

January Council Meeting Updates

At its meeting in Philadelphia on January 18 and 19, the Council reviewed drafts for several projects, with the following outcomes: Consumer Contracts: The Council discussed § 1, Definitions and Scope, and § 2, Adoption of Standard Contract Terms, of Council Draft No....
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