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Relational economic loss

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Introduction "Relational economic loss" describes the loss flowing from negligent damage to the property of a third party, where the plaintiff is in a contractual or other relationship with that third party. 1 At first glance, the notable similarity between Canadian and Australian jurisprudence on relational economic loss is the lack of cohesiveness and certainty within its appellate courts. In Caltex2 and Norsk3 - both landmark cases delineating the principles in this area of law - a considerable diversity of reasoning within the majority judgements of both the High Court of Australia and the Supreme Court of Canada was evident. In examining the more recent judgements of Perre4 and Bow Valley5, this paper compares the judicial evolution of both countries in an area described as "the cutting edge of the law of torts."6 It is suggested that Perre has not satisfactorily remedied the state of Australian law governing pure economic loss....

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