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Manufacturers and Suppliers Win Big in Pennsylvania Economic Loss Doctrine Argument

11/30/2015

The economic loss doctrine (ELD) in Pennsylvania "precludes recovery for negligence 'if the plaintiff suffers a loss that is exclusively economic, unaccompanied by an injury to either property or person.'" Elliot-Lewis Corp v. Skanaka USA Building, Inc., 2015 U.S. Dist. Lexis 98405 (E.D. Pa. July 27, 2015) (quoting Bouriez v. Carnegie Mellon Univ., 430 F. App’x 182, 187 (3d Cir. 2011)). There is, however, a significant exception to the ELD based on Section 552 of the Restatement (Second) of Torts, which allows tort claims for negligent misrepresentation (even absent injury to property or person) against an entity that is "in the business of supplying information." Bilt-Rite Contractors, Inc. v. The Architectural Studio, 866 A.2d 270, 285 (Pa. 2005). The prototypical examples of such entities are architects and design professionals. Id. at 285-87.

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