Also known as: pecuniary-loss rule · economic loss rule
Written by attorneys — see sources below.
A damages limitation in wrongful death actions that restricts recovery to the financial losses suffered by the decedent's survivors. The rule measures damages by the value of support, services, and contributions the decedent would have provided, excluding grief, companionship, or other non-economic harms unless a statute expressly allows them.
Patrick Phan dies in a car accident caused by a negligent driver. His surviving spouse and two minor children sue for wrongful death. The court applies the pecuniary loss rule and permits recovery only for the wages and household services Patrick would have provided over his expected lifetime. The family cannot recover damages for their emotional suffering or loss of companionship.
Pilar Pena, a single mother, is killed by a defective product. Her adult son sues under the wrongful death statute. The court limits damages to the pecuniary contributions Pilar would have made, such as financial support and household help. No recovery is allowed for the son's grief or loss of parental guidance.
The rule permits recovery only for measurable financial losses such as lost wages, support, and services the decedent would have provided. Non-economic harms like grief or loss of companionship are excluded unless a statute expressly authorizes them.
No. The rule is specific to wrongful death damages calculations. In ordinary negligence actions, compensatory damages for economic harm require proof of actual pecuniary loss, but that principle is distinct from the wrongful death limitation.
The plaintiff must show with reasonable certainty the financial contributions the decedent would have made, often through evidence of earnings history, life expectancy, and household services. Speculative or emotional losses are not recoverable.