CanadaCan I claim economic losses from a product contamination even without physical injury?
Yes, in some cases you can claim economic losses from product contamination without physical injury, but only if a duty of care is established and the loss falls within recognized categories of recoverable pure economic loss.
What the Law Says
Canadian law generally treats 'pure economic loss' — financial harm without accompanying personal injury or property damage — as unrecoverable in negligence unless it falls within narrowly defined exceptions. No federal or provincial statute creates a general right to recover such losses; instead, courts define recoverability through common law principles.
Pure economic loss includes lost profits, increased operating costs, or recall expenses resulting solely from a contaminated product — with no physical harm to people or property.
The Supreme Court of Canada has held that recovery for pure economic loss requires both: (1) a duty of care owed by the defendant to the plaintiff, and (2) that the loss fits within an established category where such losses are recognized as compensable — for example, negligent misrepresentation or relational economic loss in specific supply-chain relationships.
There is no statutory cause of action for pure economic loss in Canadian tort law. Recovery depends entirely on judicial interpretation of negligence principles.
What Courts Have Said
The Supreme Court of Canada’s decision in 1688782 Ontario Inc. v. Maple Leaf Foods Inc. is the leading authority on when pure economic loss from product contamination is recoverable in Canada.
The Court held that Maple Leaf Foods did not owe a duty of care to franchisees for purely economic losses arising from a listeria contamination recall, because the relationship did not meet the criteria for relational economic loss and fell outside recognized categories of recoverable pure economic loss.
What to Do
Determine whether your relationship with the contaminating party falls within a recognized category (e.g., direct supplier-distributor with close proximity and foreseeability).
Gather evidence showing reliance, closeness of relationship, and reasonable foreseeability of economic harm.
Consult a lawyer promptly — limitation periods for negligence claims in most provinces are 2 years from discovery of the loss.
Consider alternative claims, such as breach of contract or under consumer protection statutes, which may offer broader recovery.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.