Economic Loss Doctrine did not bar a Contractor’s Negligent Misrepresentation Claim against Architect Seeking Indemnity against Subcontractor Delay Claim

Where a subcontractor sued the prime contractor based in part on delay claims, the prime filed a third-party complaint against the project owner and the architect seeking indemnity. The court held that the architect owed the contractor a duty of care and that the...

Economic Loss Rule Does not Apply to Fraud Claims

The economic loss rule was applied by a trial court to bar a homeowner in a contractual relationship with a contractor from suing for fraud instead of only for breach of contract. This was reversed on appeal, with the appellate court holding that while claims for...

Economic Loss Doctrine Does Not Bar Negligent Misrepresentation Claim against Design Professional

By: Kent Holland A professional negligent misrepresentation claim was filed against a professional environmental/geotechnical firm by the project developer that was its client. The suit sought to recover economic losses the developer incurred when it discovered that a...

Economic Loss Doctrine Bars Claim against Designer by a Third Party Seeking Purely Economic Losses

By J. Kent Holland, Jr., Esq. The Maryland Court of Appeals applied the economic loss doctrine to bar a claim against an engineer by a general contractor seeking to recover economic losses based upon reliance on allegedly defective designs. In the absence of...

Economic Loss Rule Barred Claim against Contractor’s President

An error was made by a surveyor in setting the level for a foundation pad for a church building.   A construction contractor then proceeded to excavate dirt from the foundation area, believing the resulting level would be higher than required by the base flood...

A Claim Under the Negligent Misrepresentation Exception to the Economic Loss Doctrine May Be Predicated on Implied Representations

This dispute concerned Pennsylvania’s application of the Economic Loss Doctrine and its interpretation of the exception allowed by Section 552 of the Restatement (Second) of Torts. Gongloff Contracting, L.L.C., (“Gongloff”) was a second-tier subcontractor on a...

Developer is Third Party Beneficiary of Window Manufacturer’s Warranty but Economic Loss Doctrine Prevents Recover of Consequential Damages

Kent Holland, J.D. ConstructionRisk, LLC Where the developer of an apartment complex filed suit as an intended beneficiary under the contract between a window manufacturer and one of the subcontractors on the project, the trial court denied the manufacturer’s demurrer...

Economic Loss Doctrine Bars Negligence Claim Arising out of Breach of Contract

Where a condominium association filed suit asserting negligence claims against the general contractor that built the complex, alleging defective workmanship including deficient masonry work and use of unauthorized black building paper in place of specified...

Economic Loss Doctrine Bars Claim against Engineer Individually

By J. Kent Holland, Esq. ConstructionRisk Counsel, PLLC Where a project owner filed suit against both the engineering firm, and the individual engineer that designed a post foundation for a fabric-roofed farm building, the negligence action against the individual...