Economic Analysis of Law and Revival of Fault in Civil Liability System with Emphasis on USA case law

Economic analysis of law is a new approach in law that emerged in the early 1960''s and its main purpose is managing the rules of the legal system in a way to achieve economic efficiency. This approach has been influential in all the areas of law including the law of civil liability and follows to set up the compensation system based on some principles to minimize the costs resulting from damages. This paper first uses the analytical method and tries to describe the theoretical framework of the economic fault and afterward follows up to explain how it is emerged in the case law. Economic analysis of civil liability law examines the basis of liability by using normative and positive approaches and evaluates the capability of each approach to obtain economic efficiency and at the end chooses the economical fault as the basis of liability from the viewpoint of both approaches; a choice that is able to prevent the undesirable consequences of strict liability on economy، hence the economic analysis of law leads to the revival of fault in the civil liability system.