Nuances of the Economic Loss Rule in Different Jurisdictions, How Owners Can Recover Damages From Subcontractors With/Without a Contract, and Insurance Coverage Issues for Contractual Liability Exclusions

February 24, 2015 5:05pm

David V. Wilson
Shareholder
LeClairRyan

Claude Bosworth
Shareholder
Rizzo Mattingly Bosworth PC

Melissa Lin
Partner
Righi Law Group

Michael K. Wilson
Partner
Broad and Cassel, Attorneys at Law

  • Interpreting recent court decisions addressing the types of damages you can recover if you have/don’t have a contract
  • Economic loss rule adopted in different jurisdiction; what are the variations if any?
  • How can an owner recover from a subcontractor without a contract?
    • Owner alleges negligence, breach of implied warranty against the subcontract
    • Owner recovering on a tort theory
  • What limitations exist in recovering based on the economic loss rule?
    • Limitations on recovering attorney’s fees
  • Measuring scope of damages
  • Policies that do not apply to liability assumed in contract
    • Subcontractors who get sued for breach of contract and whether this is covered by an exclusion
    • Owners suing for breach of contract because scope of damages are broader and includes recovery of attorney’s fees