Florida Supreme Court limits the economic loss rule to products liability cases

The economic loss rule is a judicially-created doctrine that prohibits any tort action or recovery where there are no injuries to persons or their property, but rather, the damages or losses suffered are economic in nature.  The rule was intended to recognise the “fundamental boundary between contract law, which is designed to enforce the expectancy interests of the parties, and tort law, which imposes a duty of reasonable care and thereby encourages citizens to avoid causing physical harm to others”. Tiara Condominium Assoc., Inc. v. Marsh & McLennan Companies, Inc., ___ So.3d. ___, 2013 WL 828003, *2 (Fla. Mar. 7, 2013) (quotations omitted).  In Tiara Condominium, the Florida Supreme Court, in a five-to-two decision, formally receded from what the majority called Florida’s “unprincipled expansion” of the economic loss doctrine, and held that under Florida law, application of the economic loss rule is expressly limited to products liability cases. Continue reading