– The economic loss rule in Florida prohibits tort recovery if the only damages suffered are economic losses.
– This means that if a product damages itself but does not cause personal injury or damage to other property, the proper cause of action is breach of contract, not negligence.
– In the construction context, this rule applies to disputes between parties such as developers and buyers, where the buyer’s remedy against the developer for defective work would be for breach of contract, not negligence. 1. The application of Florida’s economic loss rule has a long and confusing history, with unclear pronouncements and criticism from the Florida Supreme Court.
2. The Florida Supreme Court’s most recent decision in Tiara held that the economic loss rule applies only in products liability cases.
3. Following Tiara, the application of the economic loss rule in construction law is unclear, with some courts treating buildings as products and applying the rule in construction-defect cases. 1. Florida courts have cited Justice Pariente’s concurrence in Tiara with approval, requiring any alleged tort to be independent of any breach of contract claim.
2. The Florida Supreme Court’s holding in Moransais that there is a cause of action under Florida law against professionals for their negligent actions despite a lack of privity between the professional and the plaintiff remains intact after Tiara.
3. Florida courts limit the cause of action against professionals to economic professionals, where the standard of care includes a duty to protect the economic interests of clients or affected parties.
4. There are exceptions to the economic loss rule in the construction context, such as statutory causes of action and actions under Florida’s Uniform Fraudulent Transfer Act.
5. The economic loss rule remains an important protection for contractors and subcontractors in construction projects.
https://www.jimersonfirm.com/blog/2017/12/florida-economic-loss-rule/
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