Eleventh Circuit Upholds Economic Loss Rule In Product Liability Lawsuits

The Economic Loss Rule is a doctrine of law that prohibits a product liability claim being brought against a manufacturer for a defective product that only destroys itself, without harm to other property or to a person. In those instances where the product fails but only damages itself and nothing else, the plaintiff's only remedy is to sue for breach of contract against the manufacturer of the product. The plaintiff cannot seek recovery from the manufacturer under product liability causes of action. The Economic Loss Rule has historically served as the boundary between tort and contract law. Despite the fact it is part of the basic fabric that makes up tort law, it is still challenged by plaintiffs in product liability actions.

On December 20, 2016, the U.S. Court of Appeals, Eleventh Circuit upheld a district court's decision dismissing a product liability negligence claim made against a manufacturer...