Economic Loss Rule Applied to Negligent Misrepresentation in Construction Claim

The economic loss rules limits a party’s ability to recover purely economic losses under tort theories such as negligence and strict liability. The Texas Supreme Court’s latest decision on the Rule is a good review of the applicable case law. Ultimately, in this case, the Court held a general contractor could not “recover the increased costs of performing its construction contract with the owner in a tort action against the project architect for negligence misrepresentation—errors—in the plans and specifications.” The full opinion is here.

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