Significant Appellate Decision - Economic Loss Rule

Significant Appellate Decision - Economic Loss Rule

January 3, 2005

The Supreme Court of Florida in Indemnity Insurance Co. of North America, Inc. v. American Aviation, Inc., held that the economic loss rule, which precludes tort claims for purely economic losses, applies only where: (1) the plaintiff and defendant are in contractual privity, or (2) the defendant manufactures or distributes a defective product that damages only itself.


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