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Economic loss doctrine

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Definition Edit

The economic loss doctrine is

a judicially created doctrine providing that a commercial purchaser of a product cannot recover from a manufacturer under tort theories damages that are solely economic losses. When contractual expectations are frustrated because of a defect in the subject matter of a contract, a party’s remedy instead lies exclusively in contract.

The doctrine does not bar claims involving physical injury or physical harm to property, however, as those are considered proper tort claims.[1]

References Edit

  1. Budgetel Inns, Inc. v. Micro Sys., Inc., 8 F. Supp. 2d 1137, 1141 (E.D. Wis. 1998)(full-text) (citations omitted).

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