5.3.1.6.4 Economic Loss Rule

• Jurisdiction: Arizona

The economic loss rule “bars plaintiffs in certain circumstances from recovering economic damages in tort.”^[153] The “rule” or “doctrine” first came to prominence in Arizona in 1984 through the supreme court’s opinion in Salt River Project v. Agricultural Improvement and Power District v. Westinghouse Electric Corp.^[154] The Arizona Supreme Court did not again address the economic loss rule until its 2010 decision in Flagstaff Affordable Housing Partnership v. Design Alliance, Inc.^[155] As noted by the court, prior to that opinion, there was conflicting authority on the application and breath of the economic loss rule in Arizona:

In the absence of other decisions by this Court, the court of appeals and the federal courts have reached conflicting conclusions regarding the application of the doctrine under Arizona law. Compare Apollo Group, Inc. v. Avnet, Inc., 58 F.3d 477, 480 (9th Cir. 1995) (stating that Salt River reflects that Arizona applies the economic loss rule “broadly”), with Evans v. Singer, 518 F....