News & Analysis as of

Negligence Economic Loss Doctrine

White and Williams LLP

Drawing the Line: In Tennessee, the Economic Loss Doctrine Does Not Apply to Contracts for Services

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In Commercial Painting Co. v. Weitz Co. LLC, No. W2019-02089-SC-R11-CV, 2023 Tenn. LEXIS 39 (Weitz), the Supreme Court of Tennessee (Supreme Court) considered whether the economic loss doctrine barred the plaintiff’s claims...more

McGlinchey Stafford

Can My Agent Bind Me to an Arbitration Agreement with a Third Party? - McGlinchey Commercial Law Bulletin - August 18, 2023

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Cincinnati v. PE Alms Hill Realty, LLC, 1st Dist. Hamilton, 2023-Ohio-2784. In this appeal, the First Appellate District affirmed the trial court’s decision to grant commercial lenders summary judgment on their breach of...more

Bradley Arant Boult Cummings LLP

Willful or Wanton Conduct Not Enough to Overcome Economic Loss Rule Says Colorado Court

n Mid-Century Insurance Co., v. HIVE Construction, Inc., a Colorado court of appeals recently reversed the decision of a lower court that had refused to apply the economic loss rule to a negligence claim alleging wanton or...more

White and Williams LLP

Part of the Whole: Idaho District Court Holds Economic Loss Rule Bars Tort Claims Related to Water Supply Line that was Part of...

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In Safeco Ins. Co. of Ill. v. LSP Prods. Grp., 2022 U.S. Dist. LEXIS 139566, the United States District Court for the District of Idaho (District Court) considered whether the plaintiff’s tort claims against the manufacturer...more

Snell & Wilmer

California Supreme Court Weighs In on Negligence Claims Related to Mortgage Loan Modifications

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On March 7, the California Supreme Court settled the issue of whether a mortgage servicer owes a duty of care to a borrower in the context of loan modification review, holding that negligence claims related to loan...more

Bradley Arant Boult Cummings LLP

North Carolina Muddies the Water on the Economic Loss Doctrine

A pair of recent rulings involving the economic loss doctrine from North Carolina serve as a timely reminder to carefully consider the extent of contractual remedies in negotiation of construction agreements – lest a later...more

Woods Rogers

Questions About Tort and Contract Claims in the Cybersecurity Context Left Unsettled

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Supreme Court of Virginia Declines Certified Questions from Federal Court in In re: Capital One Consumer Data Security Breach Litigation - The lawsuit In re: Capital One Consumer Data Security Breach Litigation, has already...more

White and Williams LLP

Utah Digs Deep and Finds “Design Defect” Includes Pre-Construction Geotechnical Reports

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The Supreme Court of Utah recently found that an incorrect pre-construction geotechnical engineering report is a “defective design.” Thus, actions arising from an incorrect geotechnical report are appropriately governed by...more

Ward and Smith, P.A.

The Economic Loss Rule - Recently Refined or Redefined by the North Carolina Supreme Court

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Recently, the North Carolina Supreme Court issued a decision impacting the application of the economic loss rule in commercial settings, particularly construction. This article provides a refresher on the economic loss...more

Smith Anderson

Construction Claims – No Contract, No Claims?

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The North Carolina Supreme Court recently issued a decision in Crescent University City Venture, LLC v. Trussway Manufacturing, Inc. The case decided the question of whether a commercial developer-owner can bring a negligence...more

Butler Weihmuller Katz Craig LLP

If the Sprinkler Pipes Fit, You Must Acquit

What Constitutes a Product under the Economic Loss Rule - The Economic Loss Rule limits a defendant’s tort liability for defective products to injuries caused to persons or damage caused to property other  than the...more

Davis Wright Tremaine LLP

Oregon Court of Appeals Addresses Economic Loss Doctrine and Vicarious Liability in Construction Dispute

The Oregon Court of Appeals recently issued a decision touching on the economic loss doctrine and vicarious liability in a construction dispute. The outcome provides key lessons for manufacturing companies that may maintain...more

Skadden, Arps, Slate, Meagher & Flom LLP

Privacy & Cybersecurity Update - July 2020

In this month's edition, we examine the Court of Justice of the European Union's decision invalidating the EU-U.S. Privacy Shield framework, as well as the U.S. government's response to the decision. We also examine two...more

White and Williams LLP

Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses

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In Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court of Appeals of Wisconsin, District Two, considered whether a party may bring a negligence claim for purely economic damages. In...more

Kilpatrick

Data breach class actions: Illinois federal court dismisses negligence claims for lack of common law duty and based on the...

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Takeaway: In a data breach class action, the typical panoply of claims asserted include tort claims (such as negligence and negligence per se), contractual claims (such as claims for breach of express and implied contracts),...more

Downs Rachlin Martin PLLC

Vermont Supreme Court Recognizes Exception to the Economic Loss Rule

Sutton v. Vermont Regional Center, 2019 VT 71 (Oct. 14, 2019) - Despite its longstanding reputation as liberal and sympathetic to plaintiffs, the Vermont Supreme Court has for a very long time strictly enforced the...more

White and Williams LLP

Not All Damages Are Created Equal – the Proper Application of the Economic Loss Doctrine

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In William Lansing v. Doe, 2019 Ore. App. LEXIS 1564, the Court of Appeals of Oregon considered whether the Economic Loss Doctrine (ELD) applied to the plaintiff’s claims based on purportedly faulty construction work in a...more

White and Williams LLP

Virginia Molds Tort Versus Contract Law in New Home Construction Case

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Often times, both contract and tort claims co-exist in a subrogation matter and the line between the two can be blurred. This is especially true in the context of damages resulting from new home construction defect claims....more

Troutman Pepper

North Carolina Federal District Court Dismisses Tort Claims Based on Same Duty and Breach Alleged in Plaintiff’s Contract Claims

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Precision Hydraulic Cylinders, Inc. v. Manufacturing. Technology, Inc., No. 7:18-CV-203-FL, 2019 BL 344743, 2019 U.S. Dist. LEXIS 156670 (E.D.N.C. Sept. 13, 2019) - Precision Hydraulic Cylinders, Inc. (“Precision”) issued...more

Tucker Arensberg, P.C.

Pennsylvania Supreme Court Holds That Employers Have Duty to Protect Their Employees’ Data

Dittman v. UPMC, 196 A.3d 1036 (Pa. 2018).  The Pennsylvania Supreme Court holds that employers have a legal duty to use reasonable care to safeguard sensitive personal information of their employees when the employer chooses...more

Maynard Nexsen

Exceptions to the Economic Loss Rule in North and South Carolina: Yes, an owner MAY be able to sue that subcontractor after all!

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In North Carolina, the economic loss rule will not bar recovery on a negligence claim when there is no contract between the parties. In Lord v. Customized Consulting Specialty, Inc., a general contractor contracted with the...more

Ward and Smith, P.A.

The Economic Loss Rule and Why It Matters in Construction Litigation

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In its broadest sense, the "economic loss rule" prohibits recovery in tort for purely economic loss incurred under contract law. The Merriam-Webster Dictionary online defines tort as "a wrongful act other than breach of...more

Womble Bond Dickinson

Lawsuit Alert: New State Law Affirmative Duty to Safeguard Personal Data

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Now a business that was hacked may be successfully sued under state common law by data subjects whose information was compromised in the crime. For the first time, a state supreme court has held that a company that was...more

Fenwick & West LLP

Pennsylvania High Court’s Dittman Ruling Makes It Harder To Dismiss Data Breach Actions

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The Pennsylvania Supreme Court recently held that employers have “a legal duty to safeguard” the personal data of their employees which is stored on internet-accessible computer systems and that the economic loss doctrine...more

White and Williams LLP

Wisconsin Court of Appeals Holds Economic Loss Doctrine Applies to Damage to Other Property If It Was a Foreseeable Result of...

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In Kmart Corp. v. Herzog Roofing, Inc., 2018 Wisc. App. Lexis 842, the Court of Appeals of Wisconsin considered whether the economic loss doctrine barred the plaintiff’s negligence claims against the defendant roofer for...more

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