In Re: Chinese Manufactured Drywall Prodcuts Liability Litigation, MDL NO. 2047 SECTION: L - Order and Reasons from Judge Eldon Fallon, dated January 10, 2010

United States District Court for Eastern District of Louisiana explains Florida's economic loss rule.

The court in the above action reviewed and applied Florida, Alabama and Louisiana law regarding the economic loss rule. As it pertains to Florida, relying upon Indemnity Insurance Co. of North America v. American Aviation, Inc., 891 So.2d 532 (Fla. 2004) and other cases, the court found that Florida's Economic Loss Rule applies in two situations. First, where there is contractual privity between the two parties and the plaintiff seeks tort damages. Second, when the defendant is the manufacturer or distributor of a product that does damage only to itself.

Case Law Alert - 3rd Qtr 2010