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Economic Loss Doctrine

Robinson Bradshaw

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

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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*

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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

Gordon Rees Scully Mansukhani

Construction Law Update – Second Quarter 2025

GRSM’s Construction Group is pleased to publish the latest issue of our Construction Law Update, a quarterly take on trends of interest to design professionals, contractors, and developers throughout the country....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

Wiley Rein LLP

Supreme Court Decision Could Galvanize Prosecutions of Government Contractors

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The U.S. Supreme Court’s May 22 decision in Kousisis v. United States could have wide-ranging implications for criminal and civil fraud cases against government contractors going forward. The Court ruled that a government...more

Lathrop GPM

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

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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

Stark & Stark

The Economic Loss Doctrine’s Preclusion of Tort Claims Related to a Breach of Contract

Stark & Stark on

In the context of a breach of contract action, one very important, often misunderstood, legal doctrine is the economic loss doctrine. In general, the purpose of this legal doctrine is to prevent a breach of contract case from...more

Foley & Lardner LLP

Supply Agreements are Critical for Risk Mitigation in Food Manufacturing: Wisconsin’s Economic Loss Doctrine Bars Food...

Foley & Lardner LLP on

A recent decision from the Eastern District of Wisconsin, Hans Kissle Inc v. Echo Lake Foods Inc, No. 24-CV-484-SCD, 2024 WL 4186678 (E.D. Wis. Sept. 13, 2024), provides a helpful discussion of exceptions to Wisconsin’s...more

Parker Poe Adams & Bernstein LLP

Fourth Circuit Increases Defendants' Exposure in White Collar Cases, Interpreting 'Loss' as Either Actual or Intended Financial...

For years, it has been unsettled in the Fourth Circuit Court of Appeals whether a white-collar defendant may be held accountable for intended loss amounts during sentencing in fraud and other financial harm cases. Prosecutors...more

Holland & Knight LLP

Commercial Parties, Transactional Lawyers and Litigators Beware: California Law Has Changed

Holland & Knight LLP on

California law has changed. The change now makes it easier for California litigants to sue their opponents for fraudulently breaching a contract. Lawyers who negotiate and draft agreements subject to California law should...more

Clark Hill PLC

Colorado Supreme Court Rules That the Economic Loss Rule Has No Bearing on Whether the Colorado Governmental Immunity Act Bars a...

Clark Hill PLC on

In City of Aspen v. Burlingame Ranch II Condo. Owners Ass’n, Inc., 2024 CO 46 (Colo. 2024), the Colorado Supreme Court case clarifies that the economic loss rule (ELR) has no part to play in determining whether the Colorado...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - January 2024 #4

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Vince McMahon, co-founder of World Wrestling Entertainment Inc., has resigned, a WWE representative confirmed Friday, a day after a former employee claimed McMahon forced her to have sex, trafficked her to other executives...more

Ervin Cohen & Jessup LLP

Courts surprisingly affirm insurance coverage to defend against economic loss

For parties facing class action lawsuits, where the class seeks to recover for economic losses, there may still be opportunities for insurance coverage. Thus, where economic losses arise out of the purchase of products that...more

White and Williams LLP

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

White and Williams LLP on

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

Adams & Reese

Tennessee Supreme Court Rules Economic Loss Doctrine Only Applies to Products Liability Cases; Reverses Appeals Court’s Expansion

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The Tennessee Supreme Court recently issued an important decision making clear that in a breach of contract dispute, the aggrieved party may recover more in damages than the parties’ contract permits, such as punitive,...more

McGlinchey Stafford

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

McGlinchey Stafford on

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

White and Williams LLP

ELD Strikes Again! Michigan Court Hits the Brakes on Plaintiffs’ Economic Loss Claims

White and Williams LLP on

In HDI Glob. SE v. Magnesium Prods. of Am., Inc., No. 360385, 2023 Mich. App. LEXIS 2602 (Magnesium Prods.), the Court of Appeals of Michigan (Court of Appeals) considered whether the lower court erred in dismissing the...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

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

Snell & Wilmer

Arizona Supreme Court Confirms Importance of Implied Warranties of Workmanship and Habitability

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n late September 2022, Arizona’s Supreme Court issued a new opinion important for any person or company working in residential construction. The Court’s opinion in Zambrano v. M & RC II LLC, et al affirms the importance of...more

Zuckerman Spaeder LLP

Sentencing in Government Contracting Fraud Cases When There is No Actual or Intended Loss

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In government contracting fraud cases with no actual or intended loss, defense attorneys should be on the lookout for prosecution attempts to invoke the “government benefits rule” to estimate “total gain” as an alternative...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...

White and Williams LLP on

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

Saiber LLC

The Saiber Construction Law Column: September 2022

Saiber LLC on

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

Lowndes

Are Economic Losses Caused by COVID Shutdowns Recoverable Under Commercial Property Insurance Policies

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As we have previously written, whether economic losses caused by COVID shutdowns can be recovered under commercial property insurance policies is a hotly-contested issue. (Past articles include, ‘Will Your Business...more

Spilman Thomas & Battle, PLLC

Bridges, Natural Disasters and Liability - The Skanska Decision (Part 2)

In the last edition of The Site Report, we discussed the legal issues surrounding the damage caused by Skanska's construction barges to the new Pensacola Bay Bridge ("Bridge") between Pensacola, Florida and Gulf Breeze,...more

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