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Lindenbergh, Siewert D.; Kippersluis, Peter P.M. van --- "Non Pecuniary Losses" [2009] ELECD 294; in Faure, Michael (ed), "Tort Law and Economics" (Edward Elgar Publishing, 2009)

Book Title: Tort Law and Economics

Editor(s): Faure, Michael

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847206596

Section: Chapter 8

Section Title: Non Pecuniary Losses

Author(s): Lindenbergh, Siewert D.; Kippersluis, Peter P.M. van

Number of pages: 13

Extract:

8 Non pecuniary losses
Siewert D. Lindenbergh* and
Peter P.M. van Kippersluis**


8.1 Introduction
Non pecuniary losses can be characterized as losses that are suffered by
damaging goods or interests which have in themselves no economic price
or value on a financial market. Examples are damage to goods with a pri-
marily sentimental value, such as an album of wedding photos, pain and
suffering as a result of physical injury, damage to personal reputation, or
even the death of a person. Due to the fact that these goods or interests
have no substantial or direct market value, non pecuniary losses are often
characterized as losses that cannot be undone with money. Rogers (2001,
p. 246) defines non pecuniary losses as `losses which are not damage to a
person's assets or wealth or income and which are therefore incapable of
being quantified in objective financial manner by reference to a market'.
Tort law, however, generally recognizes non pecuniary losses to some
extent as losses that should be compensated with money.
The paradox described above gives rise to several questions that have
attracted attention in the field of law and economics. To address these ques-
tions we will first pay attention to some aspects of tort law and economics in
general (Section 8.2). Then we will deal with views on the question of why
non pecuniary losses should be compensated (Section 8.3), with aspects
of valuation of non pecuniary losses (Section 8.4) and with risks of ...