Torts: Economic Harm
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 Portions of the Restatement Second have been superseded by the Restatement Third of Torts: Products Liability, Apportionment of Liability, and Liability for Physical and Emotional Harm.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.
Andrea Kang Wooster | July 10, 2024 | Torts: Economic Harm
The U.S. Supreme Court cited Restatement of the Law Third, Torts: Liability for Economic Harm §§ 9 and 13, which discuss common-law fraud, in support of its opinion in SEC v. Jarkesy, No. 22-859 (June 27, 2024), concluding that, when the U.S. Securities and Exchange...
Andrea Kang Wooster | December 14, 2023 | Property, Torts: Economic Harm
State courts across the country continue to be guided by the work of The American Law Institute. During the 2022-2023 fiscal year, the highest courts of seven different states—Arizona, Delaware, Idaho, Montana, South Carolina, West Virginia, and Vermont—adopted one or...
Andrea Kang Wooster | June 20, 2023 | Torts: Economic Harm
Recently, in interpreting the False Claims Act’s scienter requirement, the U.S. Supreme Court turned to the traditional, common-law scienter requirements for fraud set forth in the Restatement of the Law Second, Torts, and the Restatement of the Law Third, Torts:...
Seo Ho Lee | December 1, 2022 | Torts: Economic Harm
In Dhital v. Nissan North America, Inc., 2022 WL 14772909 (Cal. Ct. App. Oct. 26, 2022), the California Court of Appeal held that claims for fraudulent inducement were not barred by the economic-loss rule as defined by Restatement of the Law Third, Torts: Liability...
Leslie Kendrick | July 5, 2022 | Property, Torts: Economic Harm
Below is the abstract for “The Perils and Promise of Public Nuisance,” available for download on SSRN. Public nuisance has lived many lives. A centuries-old doctrine defined as “an unreasonable interference with a right common to the general public,” it is currently...
Pauline Toboulidis | March 10, 2022 | Torts: Economic Harm
The California Supreme Court looked to § 3 of the Restatement of the Law Third, Torts: Liability for Economic Harm in a case involving the examination of the Economic Loss Rule. The case, Sheen v. Wells Fargo Bank, raised the issue of whether a mortgage servicer owes...
