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In New Jersey, the “economic-loss doctrine” bars tort claims when the plaintiff’s only damages are economic in nature because, when parties enter into a contractual relationship, a contractual remedy flows from contract, not...more
The Economic Loss Doctrine and its various analogues (e.g., the Independent Duty Rule and the Gist of the Action Doctrine) vary in form and application, but each is a judge-made rule serving one principle: If a party seeks...more
The Tennessee Court of Appeals recently issued an opinion extending application of the economic loss doctrine to certain construction claims. Among other things, the economic loss doctrine prevents a party from recovering on...more
This article addresses recent developments in North Carolina law regarding the economic loss rule, explores the application of the economic loss rule to commercial construction projects in light of those developments, and...more
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
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
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
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
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
McMillin Albany LLC v. Superior Court, No. S229762, 2018 Cal. LEXIS 211 (Jan. 18, 2018) - Several homeowners (“Plaintiffs”) brought suit against developer/general contractor McMillin Albany LLC (“McMillin”) for alleged...more
TK Servs., Inc. v. RWD Consulting, LLC, 2017 U.S. Dist. Lexis 97239 (D.D.C., June 23, 2017) - This litigation arose from a dispute between TK Services, Inc. (“TKS”), as sub-subcontractor, and RWD Consulting, LLC (“RWD”),...more
Can a contractor sue the project’s designer for losses allegedly caused by errors in construction documents? This question was presented in the Eby v. LAN/STV case, which is now before the Texas Supreme Court....more