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Real Property & Development Review

Tag Archives: Economic Loss

Parties In Privity May Sue in Tort Over Construction Defects

Posted in Construction

Last month’s Oregon Appellate Court decision clarifies that parties in privity with one another MAY sue in tort for construction defects. Previously, the law seemed relatively straight forward: Unless parties are in a “special relationship” (eg, physician-client; engineer-client), parties in contract with one another generally may not bring a separate cause of action in tort for construction defects.  Jones v. Emerald Pacific… Continue Reading

Division 2: ELR Bars Fraud Claims

Posted in Construction

Division 2 today joins Division 1′s recent decision in Carlile v. Harbour Homes holding that claims for fraudulent misrepresentation are barred by the Economic Loss Rule. Copy of opinion also available here Download file

9th Circuit Certifies Economic Loss Doctrine Issues to Washington Supreme Court

Posted in Construction

A classic economic loss scenario: The City of Seattle owns the Monorail between downtown and Seattle Center and has a contract with a JV who operates the Monorail.  In 1999, the City hired a design firm (LTK) under a separate contract to identify and repair problems with the Monorail trains.  The JV had no contractual relationship with LTK.  In… Continue Reading

CPA Claim Is Only Claim to Survive in Harbor Homes Appeal

Posted in Construction

In this case, 10 homeowners who bought homes from the original purchaser-occupants of a Harbor Homes project in Snohomish County sued the original developer (Harbor) for construction defects.  Each claim (save the Consumer Protection Act claim) was mowed down by Division One as follows: Implied Warranty of Habitability.  Because this warranty only extends to original purchaser-occupants… Continue Reading

Supreme Court Clarifies Scope of Economic Loss Doctrine

Posted in Construction

Today’s economic loss decision from the Supreme Court is significant. As readers of this site know, the economic loss doctrine states that a plaintiff may not sue in tort for recovery of purely economic losses (rather than personal injury or property damage).  Instead the plaintiff is limited to whatever remedies might be available under the written… Continue Reading

Misrepresentation Claim Barred by Economic Loss Doctrine

Posted in Construction

The economic loss doctrine (in a nutshell) means you can’t sue in tort for purely economic loss (in contrast to personal injury or property damage).  Here, Division 2 dismisses an owner’s claim that a builder negligently misrepresented the quality of synthetic stucco applied to a home, holding the owner’s remedies are limited to the contract… Continue Reading

Owner Allowed to Bring Tort Claim Despite Having Signed RESPA

Posted in Construction

WCL brings you the latest dispatch from the “economic loss doctrine” front: a Division II decision that allows a home buyer to proceed, in tort, against the developer of a lot to recover for property damage caused by water intrusion. As the Court dryly summarized the evidence: “They [owners] eventually discovered that water up to… Continue Reading

The “Economic Loss Doctrine” Revisited

Posted in Construction

The case the Supreme Court heard on September 29, 2005 is not exactly a construction case. But its impact on one of construction law’s most formidable doctrines — the “economic loss doctrine” — could be significant indeed. The Supreme Court is reviewing the decision in Alejandre v. Bull, 123 Wn. App. 611, 98 P.3d 844… Continue Reading