Does the economic loss rule bar a plaintiff from recovering from economic loss caused by a breach of contract?

MultiRegion, United States of America

The following excerpt is from Starline Windows Inc. v. Quanex Bldg. Prods. Corp., Case No.: 3:15-cv-01282 (S.D. Cal. 2016):

The economic loss rule bars a plaintiff from recovering tort damages stemming from economic loss caused by a breach of contract. 6 Witkin, Summary 10th (2005) Torts, 1514, p. 971. "Economic loss," in the products liability context, includes "damages for inadequate value, costs of repair and replacement of the defective product or consequent loss of profits. . . ." Jimenez v. Superior Court, 29 Cal. 4th 473, 482 (2002) (internal citations and quotation marks omitted). However, economic loss does not include damages that one product causes to another product. Id. Thus, "the economic loss rule allows a plaintiff to recover. . . in tort. . . when a product defect causes damage to 'other property' that is, property other than the product itself." Id. at 483 (emphasis original).

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