"Making Dollars and Sense of the Economic Loss Doctrine," DRI The Critical Path June 26, 2015
“The Economic Loss Doctrine (ELD), while sounding formidable, has applications that promote the freedom of contract, write Eric S. Cohen and Ellen H. Greiper, attorneys in Goldberg Segalla’s Construction and Professional Liability Practice Groups.
“Its stability notwithstanding, some recent barbs have been cast at it in two states in particular — New York and New Jersey — while the California Supreme Court just upended the doctrine, setting the stage for a brief reintroduction. For many, the ELD invokes chilling memories of the rule against perpetuities or circus clowns. (Insert your fear here.) And while the ELD has multiple facets and is applied across multiple areas of law — from products liability to maritime law to construction defect and professional malpractice cases — it can be understood and, often, it is quite useful.”
In this article written for The Critical Path, the newsletter of DRI’s Construction Law Committee, Eric and Ellen explore the basic application of the ELD along with recent developments in the construction industry, how it is still taking shape in our own backyard and beyond, and the impact of the ELD on allocating and mitigating risk.
Read the article here:
- “Making Dollars and Sense of the Economic Loss Doctrine,” DRI The Critical Path, June 26, 2015