News & Analysis as of

Negligent Misrepresentation Economic Loss Doctrine

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

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

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

Troutman Pepper

Pennsylvania’s Exception to the Economic Loss Doctrine Appears Alive and Well: Appellate Court Permits Contractor to Pursue...

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Popple Construction, Inc. v. Reilly Associates, Inc. No. 775-MDA-2017, 2019 BL 213236 (Pa. Sup. Ct., June 10, 2019). On June 10, 2019, the Superior Court of Pennsylvania affirmed a lower court decision to deny a motion to...more

Holland & Knight LLP

Food and Beverage Law Update: February 2018

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Deceptive Trade Practices - Meat Exporter Had No Duty Under FCA to Pay for Beef Inspection - In United States ex rel. Barrick v. Parker-Migliorini Int'l, LLC, 878 F. 3d 1224 (10th Cir. 2017), the court affirmed...more

Cohen Seglias Pallas Greenhall & Furman PC

KY Contractors Can Now Assert Claims for Negligent Misrepresentation Against an Architect Despite Absence of a Contract

Design professionals doing business in Kentucky beware: the Kentucky Court of Appeals recently held that a contractor may pursue a negligent misrepresentation claim against an architect for delays to a project resulting from...more

Troutman Pepper

Kentucky Appellate Court Holds That a Contractor May Pursue Claim of Negligent Misrepresentation Against Architect Despite Lack of...

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D.W. Wilburn, Inc. v. K. Norman Berry Assocs., No. 2015-CA-001254-MR, 2016 Ky. App. Lexis 206 (Ky. Ct. App. Dec. 22, 2016) - This case arose out of a construction project in which the Oldham County Board of Education...more

Troutman Pepper

Maryland Appellate Court Holds Economic Loss Doctrine Bars Contractor’s Tort Claims Against Government’s Design Professional on...

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Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl, LLP, 226 Md. App. 420, 130 A.3d 1024, 2016 Md. App. LEXIS 3 ( Md. Ct. Spec. App. Jan. 28, 2016) The City of Baltimore retained a design professional, Rummel...more

Bradley Arant Boult Cummings LLP

Design Errors Exception to the Economic Loss Doctrine

A recent Pennsylvania case, Gongloff Contracting, LLC v. L. Robert Kimball & Assocs., Architects and Engineers, Inc., sheds light on circumstances in which design errors can lead to damages in tort as courts recognize...more

Cohen Seglias Pallas Greenhall & Furman PC

Can A Contractor Sue A Design Professional Without A Contract? Not In Maryland

In some states, courts allow contractors to sue design professionals for negligence even in the absence of a contract. In others, like Maryland, courts apply a rule known as the Economic Loss Rule (ELR) to bar such claims....more

Troutman Pepper

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

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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

Porter Hedges LLP

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

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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

Eversheds Sutherland (US) LLP

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

Porter Hedges LLP

Economic Loss Rule of the Third Kind - Nothing New or Alien Concepts?

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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

Snell & Wilmer

Arizona Supreme Court Has the Final Word—Again—on Economic Loss Doctrine

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Last week, in Sullivan v. Pulte Home Corp., No. CV-12-0419-PR, Arizona’s highest court took on a lingering question about the scope of economic loss doctrine since its landmark decision of Flagstaff Affordable Hous. Ltd....more

Snell & Wilmer

Nevada Supreme Court Extends Design Professional Economic Loss Rule Defense to Negligent Misrepresentation Claims on Commercial...

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In 2009, the Nevada Supreme Court (“NSC”) applied the economic loss rule to bar claims of professional negligence by design professionals in commercial construction projects, ruling that “[i]n the context of engineers and...more

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