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Case Citations [i] (Fall 2023)

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                                 THE  AMERICAN
                                 LAW   INSTITUTE


                                       Fall 2023 Citations



 TORTS 3D: LIABILITY FOR ECONOMIC HARM



            CHAPTER 1. UNINTENTIONAL INFLICTION OF ECONOMIC LOSS

§ 3. Preclusion of Tort Liability Arising from Contract (Economic-Loss Rule)

Cal.App.2022.  Quot. in sup.; com. (d) quot. in sup. Car purchasers sued car manufacturer, alleging,
inter alia, that defendant fraudulently induced plaintiffs into purchasing a vehicle from defendant by
concealing defects in the vehicle's transmission system. The trial court sustained defendant's demurrer.
This court reversed and remanded, holding that the trial court erred in finding that the economic-loss
rule barred plaintiffs' fraudulent-inducement claim. Citing Restatement Third of Torts: Liability for
Economic  Harm  §§ 3 and 9, the court explained that claims arising from fraud were exceptions to the
rule barring certain tort claims arising between contractual parties, and the fraud exception did not
require plaintiffs to allege that defendant made affirmative misrepresentations. Dhital v. Nissan North
America, Inc., 300 Cal.Rptr.3d 715, 722, 727.

§ 6. Negligent Performance of Services

D.Neb.2022.  Quot. in sup. Insured sued insurer, alleging that defendant failed to implement proper
security policies for the personally-identifiable information of its customers, resulting in plaintiff's
information being obtained for illegal uses by third parties after defendant suffered a data breach from a
phishing attempt. This court denied in part defendant's motion to dismiss, holding that plaintiff alleged a
claim for negligence, because defendant owed plaintiff a duty to exercise care regarding personally-
identifiable information it collected from customers. The court explained that, under Restatement Third
of Torts: Liability for Economic Harm § 6, defendant had a pecuniary interest in gathering plaintiff's
information as part of its business, and it failed to take reasonable care in conducting its business by
failing to secure its database from phishing scams. Weisenberger v. Ameritas Mutual Holding Company,
597 F.Supp.3d 1351, 1360, 1361.

§ 8. Public Nuisance Resulting in Economic Loss

N.D.Ohio,  2022. Cit. but dist.; coms. (a) and (g) quot. but dist. In multidistrict litigation, two counties in
Ohio sued pharmacies for allegedly engaging in intentional or illegal conduct that was a substantial
factor in causing a public nuisance in the counties, namely, oversupply of legal prescription opioids and
diversion of those opioids into the illicit market outside appropriate medical channels. After a jury found
in favor of counties, this court denied pharmacies' motions for judgment as a matter of law. The court
rejected pharmacies' argument that counties' claims were barred by the economic-loss doctrine,
explaining that pharmacies' reliance on Restatement Third of Torts: Liability for Economic Harm § 8

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          For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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