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Economic Loss Doctrine
The Economic Loss Doctrine (ELD) is a legal principle that bars negligence claims when damages are deemed purely “economic.” While more commonly applied in product defect cases, limited jurisdictions may also use the ELD to bar negligent construction claims.  And in these instances, a plaintiff’s property damage claim may be required to stem from a...
The Sixth Circuit recently held that it would not apply Kentucky’s economic loss doctrine to consumer purchases, and consumers are free to pursue tort claims against manufacturers even when damage occurs only to a product itself. The Sixth Circuit was sitting in diversity and ruled in State Farm Mut. Auto. Ins. Co. v. Norcold, Inc.,...
Since recently departing from the economic loss rule, Washington courts have continued to expand the scope and applicability of the independent duty doctrine in a variety of circumstances. A recent appellate case, The Point at Westport Harbor Homeowners’ Association v. Engineers Northwest, Inc.,[1] further enlarges the doctrine to include scenarios where no actual property damage...