Is My Drywall Chinese? - HB Litigation Conferences

What Are The Defenses?
Economic Loss Doctrine
DEFENSES
– Recognized in several states, including Florida and most other states states
facing
drywall litigation except Louisiana, which permits recovery for economic
loss.
– Generally prohibits tort recovery when a product damages itself, causing
economic loss, but does not cause personal injury or damage to any any
property other than itself. See East River Steamship Corp. v. Delaval, Inc., Inc. ,
476 U.S. 858 (1986).
– Applies "only in circumstances where the parties are either in contractual contractual
privity or the defendant is a manufacturer or distributor of a product." product."
See
Indemnity Ins. Co. v. Am. Aviation, Aviation,
891 So. 2d 532 (Fla. 2004).
– Homeowner may not sue under tort for purely economic losses when there
are contractual remedies. Fraudulent inducement is an exception to this
general rule, but the rule still applies when the fraud alleged is in the
performance of a contract.
– Most notably applies between homeowners and home builders, but may may
also apply between other parties.