Ace the JD Next Exam 2025 – Level Up Your Law Journey!

The definition of 'economic loss' in negligence cases refers to financial losses resulting from a breach of duty where there is no accompanying physical injury. This type of loss can arise in various situations, such as when a product fails to perform as expected, leading to direct financial impacts like lost profits or increased costs.

Unlike physical injuries, which would fall under compensatory damages for personal injury claims, economic loss is strictly related to monetary value and does not involve damage to a person or their physical well-being. This distinction is crucial in negligence law as it helps courts determine the scope and nature of recoverable damages in cases where there may be a breach of duty leading to financial repercussions without a concurrent physical harm.

Other aspects, such as compensation for emotional distress or legal defense costs, do not align with the specific nature of economic loss, as they involve different legal considerations and principles.