Ian Gascoigne considers the effect of economic conditions in measuring loss
The measure of loss in tort is a difficult issue because breach of a duty can set off a chain of events. In general, loss which is forseeable is recoverable, but it is often difficult to draw that line. It may seem unfair to hold the wrongdoer responsible for events which, while caused by his breach, are attributable to economic forces beyond his control.
In resolving such disputes, appellate courts have two purposes: first, to draw the dividing line on the instant facts; and, second, to establish a workable principle for future cases.
The choice is between protecting the victim, or being fair to the wrongdoer. Whether the issue is addressed in terms of causation, remoteness or contributory negligence, how is the line drawn?
● If a victim's loss is enhanced by his poor financial position, is that the wrongdoer's responsibility or an external factor? or
● If some loss resulting from a breach of duty is caused by market forces, is the victim precluded from recovering that element?
Impecuniosity
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