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Case Citations [1] (July 2019 - August 2020)

handle is hein.ali/alitorts0019 and id is 1 raw text is: TORTS 3D: LIABILITY FOR ECONOMIC HARM CHAPTER 1. UNINTENTIONAL INFLICTION OF ECONOMIC LOSS § 1. Liability for the Unintentional Infliction of Economic Loss: General Principles C.A.5, 2020. Com. (c) quot. in case cit. in sup. (citing § 1, com. (c), of T.D. No. 1, 2012, which is now § 1, com. (c), of the Official Text). Public utility brought claims sounding in breach of contract, negligence, and products liability against contractor that designed and installed an upgraded control system for plaintiff's steam-turbine generator, alleging that the system's software was programmed incorrectly and caused the generator to overheat and suffer damage. The district court granted summary judgment for defendant, finding that defendant had satisfied its sole duty under the contract, namely, to remedy the defective software, and that plaintiff's tort claims sounding in negligence and products liability were barred by the economic-loss rule. This court affirmed. The court cited Restatement Third of Torts: Liability for Economic Harm §§ 1, 3, and 6 in reasoning that the Texas Supreme Court would likely conclude that the risk suffered here-where a commercial firm purchased a faulty component part to integrate it with other components with the intent to use the finished unit itself rather than to resell it-was better addressed in contract than in tort. Golden Spread Electric Cooperative, Incorporated v. Emerson Process Management Power & Water Solutions, Incorporated, 954 F.3d 804, 808. § 2. Economic Loss Defined Va.2019. Com. (b) quot. in ftn.; illus. 2 cit. in ftn. (quoting com. (b) and citing illus. 2 to § 2 of T.D. No. 1, 2012, which is now com. (b) and illus. 2 to § 2 of the Official Text). Homeowners and their family members, among others, brought a lawsuit against construction company, alleging, inter alia, that they suffered damage to personal property, because defendant failed to properly install containment sheeting in plaintiffs' home, which resulted in mold contamination. The trial court granted defendant's demurrer. This court reversed in part and remanded, holding that plaintiffs' claim was not barred by the economic- loss rule. The court explained that, under Restatement Third of Torts: Products Liability § 21 and Restatement Third of Torts: Liability for Economic Harm § 2, the common law permitted liability in tort for damage to personal property that was not contemplated by the parties' construction agreement. Tingler v. Graystone Homes, Inc., 834 S.E.2d 244, 265. § 3. Preclusion of Tort Liability Arising From Contract (Economic-Loss Rule) C.A.5, 2020. Com. (b) cit. in sup. Public utility brought claims sounding in breach of contract, negligence, and products liability against contractor that designed and installed an upgraded control system for plaintiff's steam-turbine generator, alleging that the system's software was programmed incorrectly and caused the generator to overheat and suffer damage. The district court granted summary judgment for defendant, finding that defendant had satisfied its sole duty under the contract, namely, to remedy the defective software, and that plaintiff's tort claims sounding in negligence and products liability were barred by the economic-loss rule. This court affirmed. The court cited Restatement Third of Torts: Liability for Economic Harm §§ 1, 3, and 6 in reasoning that the Texas Supreme Court would likely conclude that the risk suffered here-where a commercial firm purchased a faulty component part COPYRIGHT ©2020 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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