Economic loss rule

• Author: Jim Wren/Laura Brown
• Pages: 477-498

ECONOMIC LOSS RULE

22-1

CHAPTER 22

ECONOMIC LOSS RULE

I. RATIONALES AND ORIGINS OF AN ECONOMIC LOSS RULE

§22:01 Varying Def‌initions of an Economic Loss Rule

§22:02 First Rationale: Protect Boundary Between Contract and Tort

§22:03 Origin of the “Boundary Protection” Rationale

§22:04 Second Rationale: Put Limits on Negligence Actions

§22:05 Origin of the “Limits on Negligence” Rationale

II. INCONSISTENT DEVELOPMENT OF AN ECONOMIC LOSS RULE

§22:10 Sampling of Economic Loss Rule Cases

§22:11 Economic Loss Rule Is Potentially a Stealth Weapon

§22:12 Variations Among Jurisdictions

§22:13 Meaning of Damage to Other Property

§22:14 Question of Privity and Application to Contractual Strangers

§22:15 Professional Duty Exception

§22:16 Negligent Misrepresentation Exception

§22:17 Personal Services Exception

§22:18 Common Non-Application of Rule to Intentional Torts

§22:19 Unreasonably Dangerous Condition Exception

§22:20 Other Potential Exceptions

§22:21 ALI Restatement History of an Economic Loss Rule

III. ALI RESTATEMENT (THIRD) OF TORTS: PRODUCTS LIABILITY

§22:30 Original Formulation of an Economic Loss Rule

§22:31 Some Jurisdictions Limit Rule to Products Liability Only

IV. ALI RESTATEMENT (THIRD) OF TORTS: LIABILITY FOR ECONOMIC HARM

§22:40 Sec. 1: Limiting Negligence by Starting With “No Duty”

§22:41 Sec. 2: Def‌ining Economic Loss

§22:42 Sec. 3: Stating an Economic Loss Rule to Protect Contracts

§22:43 Sec. 4: Recognizing Loss for Professional Negligence

§22:44 Sec. 5: Recognizing Loss for Negligent Misrepresentation

§22:45 Sec. 6: Recognizing Loss for Negligent Services

§22:46 Sec. 7: Limiting Recovery for Economic Loss Resulting from Another’s Injury

§22:47 Sec. 8: Recognizing Loss From Public Nuisance

§22:48 Sec. 9: Recognizing Loss From Fraud

§22:49 Sec. 10: Recognizing the Level of Knowledge Giving Rise to Fraud

§22:50 Sec. 11: Causation and Reliance Requirements

§22:51 Sec. 12: Foreseeability Requirement

§22:52 Sec. 13: Recognizing Loss From Violation of Duty to Disclose Information

ECONOMIC LOSS RULE

Proving Damages to the Jury 22-2

§22:53 Recognizing Loss From Misrepresentation of Opinion

§22:54 Recognizing Loss From Promissory Fraud

§22:55 Potential for Further Expansion of Recognized Duties

[Note: The author acknowledges with appreciation the research and drafting assistance of Baylor Law School

graduate Michael Clinton during the development of this chapter.]