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Economic Loss Doctrine Construction Litigation

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

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

Saiber LLC

The Saiber Construction Law Column: September 2022

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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

Bass, Berry & Sims PLC

Tennessee Court Extends Economic Loss Doctrine to Construction Claims

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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

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

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

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 Locke

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 Locke

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

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

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

Troutman Pepper Locke

A Project Consisting of Several Component Projects Is a Single Project or “Product Purchased by the Owner” Within the Meaning of...

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City of Whiting v. Whitney, Bailey, Cox & Magnani, LLC, 2018 U.S. Dist. LEXIS 44943 (N.D. Ind. Mar. 20, 2018) - The City of Whiting, Indiana (the “City”) undertook a 26-acre lakefront development project. It hired an...more

Troutman Pepper Locke

How Much Control Is Too Much Control? Federal Court In Florida Holds Designers’ Supervision of Project And Issuance Of Design...

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Suffolk Constr. Co. v. Rodriguez & Quiroga Architects Chtd., 2018 U.S. Dist. LEXIS 42652 (S.D. Fla. Mar. 15, 2018) - This case arises out of the design and construction of a science museum in Miami, Florida (the...more

Troutman Pepper Locke

California Supreme Court Clarifies That “Right To Repair Act” Is Exclusive Remedy For Both Economic Loss And Property Damage...

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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

Troutman Pepper Locke

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 Locke

Eastern District of Pennsylvania Distinguishes Bilt-Rite in Dispute Involving Information Provided to Designers by Remedial...

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Elliott-Lewis Corp. v. Skanksa USA Bldg., Inc., 2016 U.S. Dist. LEXIS 59406 (E.D.Pa. May 4, 2016) - The Federal District Court for the Eastern District of Pennsylvania held that the narrow exception to the economic loss...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

Troutman Pepper

Federal Court in Indiana Permits City to Sue Design Subconsultant Despite Lack Of Privity

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City of Whiting, Indiana v. Whitney, Bailey, Cox, & Magnani, LLC, 2015 U.S. Dist. LEXIS 150229 (N.D. Ind. Nov. 5, 2015) - The City of Whiting, Indiana (the “City”) contracted with American Structurepoint, Inc....more

Troutman Pepper

Federal District Court in New Jersey Holds that Economic Loss Rule Does Not Bar Contractor’s Tort Claims Against Architect Where...

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The University of Medicine and Dentistry of New Jersey contracted HDR Architects and Engineers, P.C. (“HDR”) to design a medical school building. After the project went to bid, the Bedwell Company (“Bedwell”) contracted with...more

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