Also known as: economic loss · non-economic loss · economic and noneconomic loss · noneconomic loss · pecuniary and nonpecuniary damages · economic damages · noneconomic damages
Written by attorneys · grounded in primary & secondary sources — see below
Pecuniary harm such as lost earnings, repair costs, or diminished value, contrasted with non-pecuniary harm such as pain and suffering or emotional distress.
Ewan Eckhart purchased a turbine from Enigma Technologies that malfunctioned and damaged only the turbine itself. Ewan sought recovery in tort for the cost of replacing the unit and lost production revenue. The court limited his recovery to contract remedies because the claim involved purely economic loss without personal injury or other property damage.
Emanuel Escobar bought engines for his fleet from Echo Systems. The engines failed at sea, causing only damage to the engines and lost charter income. Emanuel sued in tort seeking the replacement cost and business interruption losses. Recovery turned on whether the harm qualified as economic loss governed by contract rather than tort.
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Emmett Egan and several neighbors sued Equinox Energy after its plant emitted dust that reduced crop yields and required extra cleaning on their farms. The plaintiffs sought compensation for diminished property values and added operating expenses. The court weighed these economic losses against the plant's overall value when deciding on injunctive relief.
Ethan Evans obtained a compensatory award that included both medical bills and lost wages after a car accident. The jury added punitive damages many times larger than the economic component. The reviewing court examined the ratio between the punitive award and the economic plus non-economic harm actually suffered.
Eugene Ellsworth recovered a small amount for repair costs after discovering undisclosed paint damage on his new vehicle. The jury imposed a much larger punitive award. The court assessed whether the punitive amount bore a reasonable relationship to the economic loss and any threatened additional harm.
Edward Everett's widow sought death benefits after a workplace injury. The state statute offset the award by amounts already received for economic losses such as medical expenses and lost wages. The court determined the proper reduction while preserving any non-economic component of the claim.
Economic loss covers concrete financial harms such as medical bills, lost wages, and repair costs. Non-economic loss covers intangible harms such as pain and suffering. The distinction determines the scope of recoverable damages and whether the economic loss rule may bar a tort claim.
The rule bars tort recovery of economic loss without accompanying personal injury or property damage when the claim arises in a products liability setting. Outside products liability, parties may still pursue independent tort claims subject to traditional contract and tort limitations.
Courts compare the punitive award to the actual economic harm suffered and any threatened additional harm. A large disparity may indicate the award is excessive and subject to reduction under due process standards.
…of more than a million dollars polluted a stream in which plaintiff, who owned a farm, was “a lower riparian owner.” The economic loss to plaintiff from this pollution was small. This court, reversing the Appellate Division, reinstated the injunction granted by the Special Term against the argument of the mill owner that…