News & Analysis as of

Contract Disputes Economic Loss Doctrine

Robinson Bradshaw

South Carolina Supreme Court Undermines Contractual Protections of the Economic Loss Rule

Robinson Bradshaw on

Businesses — especially service providers like contractors, subcontractors, consultants and design professionals — rely on their contracts to define their risks in the marketplace. For decades, a legal doctrine known as “the...more

Fox Rothschild LLP

We Get By With a Little Help from Our Friends*

Fox Rothschild LLP on

Friends don’t let friends do business with friends. Among the key Business Court takeaways here at the blog, this maxim rings loud and clear. So, when decade-long friends Jared Londry and Daniel Farrar went into the real...more

Ward and Smith, P.A.

The Economic Loss Doctrine: A Valuable Shield for Lenders

Ward and Smith, P.A. on

Sometimes, they may even accuse you of causing them harm through negligence, breach of contract, or even breach of fiduciary duty. While the typical borrower-lender relationship doesn't create a fiduciary duty, certain...more

Lathrop GPM

Colorado Supreme Court Clarifies - a Bit - the Economic Loss Rule

Lathrop GPM on

In a case that could have far reaching implications for business and construction litigation, the Colorado Supreme Court issued an opinion on April 21, 2025, providing some greater clarity on the economic loss rule under...more

White and Williams LLP

New York Court Enforces Economic Loss Doctrine

White and Williams LLP on

The economic loss doctrine is a legal principle that has confused and frustrated subrogation practitioners since its inception. Unfortunately, once practitioners understand the basic theory, they realize how frustrating it...more

Fox Rothschild LLP

Personal Liability Of Employees For Misrepresentations Made In Performance Of A Contract

Fox Rothschild LLP on

While post-Tiara, the Economic Loss Rule (“ELR”) is limited to products liability cases, the Tiara progeny firmly establish that the independent tort doctrine (“ITD”) is alive and well. In a nutshell, the IDT “is a...more

Holland & Knight LLP

Whether the “Economic Loss Rule” Applies To DTSA Claims

Holland & Knight LLP on

A trade secret misappropriation claim can arise from the same facts as, and be joined with, a claim for breach of contract by the defendant, such as a breach of a covenant not to compete or breach of a non-disclosure...more

Troutman Pepper Locke

Preventing Limitation of Liability End-Runs

Troutman Pepper Locke on

Owners who are dissatisfied with their contractors’ performance increasingly assert fraud-based claims in addition to breach of contract claims because fraud-based claims are not typically barred by contractual waivers and...more

Saul Ewing Arnstein & Lehr LLP

Contractors Beware – Maryland’s Economic Loss Doctrine is Alive and Well

Maryland recently reaffirmed application of the “economic loss doctrine” to damages sought in construction disputes in Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl, LLP, No. 496, Sept. Term 2014, 2016 WL...more

Porter Hedges LLP

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

Porter Hedges LLP on

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

Snell & Wilmer

Under Construction - September 2013: California’s Economic Loss Doctrine – Limits on Tort Recovery

Snell & Wilmer on

In California, the economic loss rule addresses the distinction between suits in contract and tort. A contract claim can typically be pursued to recover all damages proximately caused by breach of contract, unless expressly...more

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