BIBLIOGRAPHY OF ECONOMIC-LOSS-DOCTRINE CASES
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The economic loss doctrine is an important protection for design professionals, who therefore need to know in which states it is and is not applied, and to what extent. The economic loss doctrine bars use of tort claims (e.g., professional negligence and negligent misrepresentation claims) to recover purely economic losses, such as those stemming from property damage or construction delays. In states that uphold the doctrine in full, purely economic damages may be recovered from design professionals only via breach-of-contract suits, limiting claimants to design professionals’ clients, as opposed to third parties.
Developed for GBA’s Legal Affairs Committee by Skellenger Bender, P.S., a Seattle (WA) law firm, Bibliography of Economic-Loss-Doctrine Cases comprises a state-by-state status report on the economic loss doctrine, and includes case citations that can be used for research purposes.
Some states uphold the economic loss doctrine in full; others uphold it in part. A handful of states has abandoned the economic loss doctrine altogether. There, third parties, such as owner-clients’ contractors, are allowed to sue design professionals directly (based on tort theories) in efforts to collect purely economic damages.
Economic Loss Doctrine, professional negligence, negligent misrepresentation, legal, third-party claims, third-party reliable
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