Economic Loss Doctrine

News & Analysis as of

New Jersey Supreme Court Holds That Economic Loss is Not Needed To Recoup a Former Employee’s Salary for Breach of the Duty of...

On September 22, the New Jersey Supreme Court unanimously gave the green light to awards of the remedy of equitable disgorgement, even in the absence of economic loss, as a fair and practical response to an employee’s...more

Eastern District of Pennsylvania: Insureds’ Negligence And Unfair Trade Practices Claims Against Adjusters Are Colorable Under...

Kennedy v. Allstate, No. 15-2221 (E.D. Pa. July 8, 2015). District Court recognizes possibility that insurance adjusters owe a duty of care to insureds that would be breached by failing to conduct a reasonable...more

Homebuilders Welcome Recent Court Decisions

Arizona homebuilders will welcome with open arms two recent legal rulings of substantial impact to their industry. In the first decision, on July 28, 2015, in Sullivan v. Pulte Home Corp., No. 1 CA-CV 14-0199, the Arizona...more

Homebuilders Do Not Owe a Duty of Care to Non-Original Homeowners

Recently, the Arizona Court of Appeals answered another lingering question of paramount importance to the construction industry – whether homebuilders and other construction industry professionals may be indefinitely subject...more

Superior Court of Pennsylvania Holds that Negligent Misrepresentation Exception to Economic Loss Doctrine Under Bilt-Rite May Be...

Gongloff Contracting, L.L.C. v. L. Robert Kimball & Assocs., Architects and Eng’rs, Inc., 2015 Pa. Super 149 (Pa. Super. Ct. July 8, 2015) - Pennsylvania law generally bars negligence claims when the injured party has...more

Ohio Court of Appeals Holds that Economic Loss Rule Bars Claim by Affiliates of Owner Against Subcontractor

Fed. Ins. Co. v. Fredericks, Inc., 2015-Ohio-694, 29 N.E.3d 313, 2015 Ohio App. LEXIS 684 (Ohio Ct. App. Feb. 27, 2015) This case arises from a construction project in Vandalia, Ohio that was damaged during a windstorm...more

Ninth Circuit Revives Tort Claims Initially Dismissed Under Economic Loss Doctrine Where Product Caused Damage to “Other Property”

On June 29, 2015, the Ninth Circuit Court of Appeals, in CHMM LLC v. Freeman Marine Equipment, Case No. 13-35163 (D.C. No. 3:12-cv-01484-ST), reversed the District Court’s judgment in an admiralty case, holding that a vessel...more

Pennsylvania Court Dismisses Data Breach Claims

In 2014, the University of Pittsburgh Medical Center’s computer system was hacked, resulting in the disclosure of sensitive personal information of current and former employees, including names, addresses, birthdates, social...more

PA Judge Nixes Employees’ Negligence Claim for Data Security Breach

Red On May 28, 2015, in the first known ruling of its kind, a trial court in Allegheny County held that Pennsylvania law does not recognize a civil cause of action against companies for failing to secure its employees’...more

Data Breach Negligence Claims Not Recognized in Pennsylvania

In an important and well-reasoned 12-page decision, Judge Wettick of the Court of Common Pleas of Allegheny County refused to create a common law duty to protect and secure confidential information. The decision was issued in...more

More Developments on Section 75-1.1 and the Economic-Loss Rule

Our appetites, of course, are always whetted when section 75-1.1, the economic-loss rule, and the “substantial aggravating circumstances” doctrine intersect....more

UK Court Of Appeal Issues Landmark Decision In Privacy Case

On March 27, 2015, a United Kingdom Court Of Appeal addressed two fundamental but long-unsettled issues in UK privacy law, holding that the right to privacy is an independent tort and that the showing of harm necessary to...more

Using the Economic Loss Rule to Your Client's Benefit

All lawyers can benefit from having a toolbox of general legal knowledge with which to frame a case to their client's advantage. For business attorneys the economic loss rule is a particularly useful tool. At its...more

The Demise of the Economic Loss Rule in Construction Defect Litigation

The Massachusetts Supreme Court recently held in Wyman v. Ayer Properties, LLC, that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s...more

Reflections and Gratitude

We started this blog about eight months ago. We did so because of the prevalence of section 75-1.1 claims in North Carolina business disputes. Indeed, it’s the unusual business dispute in North Carolina that does not include...more

Massachusetts Supreme Court Holds Economic Loss Rule No Bar to Condo Trustees’ Claim for Damages to Common Areas Caused By...

Wyman v. Ayer Properties, LLC, 469 Mass. 64, 2014 Mass. LEXIS 524 (July 10, 2014) - The Massachusetts Supreme Court ruled that the economic loss rule, which bars recovery of tort damages from the negligent supplier of...more

Real Property, Financial Services & Title Insurance Update: September 2014 #2

REAL PROPERTY UPDATE - - Parol Evidence: trial court erred by considering extrinsic evidence to determine parties’ intent because contract for sale of property that provided certain prior deposits be paid to seller as...more

Federal District Court in New Jersey Holds that Economic Loss Rule Does Not Bar Contractor’s Tort Claims Against Architect Where...

The University of Medicine and Dentistry of New Jersey contracted HDR Architects and Engineers, P.C. (“HDR”) to design a medical school building. After the project went to bid, the Bedwell Company (“Bedwell”) contracted with...more

Texas Supreme Court Unanimously Blocks Contractors' Economic Loss Tort Claims Against Designers

Texas contractors have long tried to directly sue their owners’ professional design firms -- rarely with success -- when faulty plans cause economic losses such as increased costs from delays and disruptions. A few cases in...more

Does the Economic-Loss Rule Bar Claims Under Section 75-1.1?

The economic-loss rule says that a contract dispute generally does not state a tort claim. The concern is that if a plaintiff could recover tort damages, that outcome would disregard the expectations reflected in the parties’...more

Legal Alert: Supreme Court of Texas Finds Contractors Cannot Recover Delay Damages for Negligent Misrepresentation Against an...

On June 20, Texas joined a number of states that apply the economic loss rule to damages claims arising from negligent misrepresentation between contractors and the owner’s architect. In LAN/STV v. Martin K. Eby Construction...more

Beware of Defendants Who Attempt to Push the Boundaries of the Economic Loss Rule (Texas)

In most jurisdictions today, to recover under a strict products liability theory, the Plaintiff must prove that a defect in the subject product was a producing cause of the Plaintiff’s damages. More importantly, in order to...more

Second Circuit Firmly Aligns (for now) with the Robins Dry Dock Rule on Non-Recoverability of Pure Economic Damages Absent...

The United States Court of Appeals for the Second Circuit in American Petroleum & Transport, Inc. v. New York, 2013 WL 6332548 (2d Cir. Dec. 6, 2013) recently - albeit reluctantly - joined the fleet of other federal circuit...more

The State and Impact of Florida’s Economic Loss Rule

In March of this year, the Florida Supreme Court departed from established precedent and limited the application of the economic loss rule to product liability cases. The court explained that this was necessary given the...more

Economic Loss Doctrine and Negligent Misrepresentation Claims

In almost every state, the economic loss doctrine prevents claimants from pursuing tort claims that arise from solely economic injuries; instead, the doctrine requires that claimants pursue these purely economic claims...more

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