3.8.4 A Preference for Contract Remedies

• Jurisdiction: Arizona

Freedom of contract, for proponents of the ELR, requires freedom from tort law and tort remedies; the marketplace simply cannot permit recovery for all foreseeable claims for purely economic losses.

The ELR emerged from product liability cases, not construction defect cases. With respect to product liability, the U.S. Supreme Court cautioned that expansive tort recovery would “make a manufacturer liable for vast sums.”^[9] Moreover, “[t]he increased cost to the public that would result from holding a...