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The “Economic Loss Rule”

Central Park LV Condominium Association, Inc. v. Summit Constructors, Inc., et. al. , Case No. 2010-CA-015748-) (Orange County Circuit Court), Order entered on May 24, 2013: Plaintiff condominium association, on behalf of unit owners, sued contractor and subcontractors for negligent construction. Defendants filed affirmative defenses that the “economic loss rule” barred the negligent claim, which plaintiff contends did not apply absence a contractual relationship (privity) between the parties. On competing Motions for Summary Judgment, trial court (Honorable A. Thomas Mihok) applied Tiara Condominium Association, Inc.  v. Marsh & McLennan Companies, Inc.,, 110 So. 3d 399 (Fla. 2013) to find for defendants since the “economic loss rule” precludes a tort claim where the only damages suffered are to the products (units) themselves.

NOTE: This decision is not final, pending any motion for reconsideration, and possible appeal.


(From RPPTL Subcommittee)