The Rule of Liability for Loss of Use When Property is Totally Destroyed: Some Economic Considerations

Abstract

In this article Professor De Alessi applies economic analysis to a California case which held that a tortfeasor who negligently destroys property which he rented is liable to the lessor for loss of use during the time in which a replacement is being procured. In arriving at the conclusion that the court may have made the correct decision despite the lack of economic considerations, a framework for economic analysis is suggested which may well be extendable to other factual situations

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