Charlene Hicks—Senior Attorney
Beginning with the United States Supreme Court’s decision in East River S.S. Corp. v. Transamerica Delaval, Inc., 476 U.S. 858, 106 S. Ct. 2295 (1986), courts nationwide have utilized the economic loss doctrine to preclude plaintiffs from obtaining a tort remedy for contract-based claims. In effect, a plaintiff cannot pursue a tort claim to recover purely economic losses.
Although the economic loss doctrine is universally accepted, the practical application of this doctrine varies considerably from state to state. See In re Target Corp. Customer Data Sec. Breach Litig., 66 F. Supp. 3d 1154, 1171 (D. Minn. 2014) (analyzing the economic loss rules in 11 different states as applied to data breach litigation and finding that some states allowed the negligence claim to continue whereas others barred the claim); Reno Flying Servs. v. Piper Aircraft, Inc., No. 13-cv-04346 NC, 2014 U.S. Dist. LEXIS 163470, at *6 (N.D. Cal. Nov. 21, 2014) (determining that although California, Nevada, and Florida all “employ some form of the economic loss rule, each state would apply it differently in this case”).
Read More


