Archive: April 21, 2007

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Economic Loss Rule Does Not Bar Owner’s Negligence Claim Against Subcontractor

Economic Loss Rule Does Not Bar Owner’s Negligence Claim Against Subcontractor

Lord v. Customized Consulting Specialty, Inc., 182 N.C. App. 635, 643 S.E.2d 28 (Ct. App. 2007)

In this case, homeowners sued their contractor regarding defective trusses installed in their home, and also brought a negligence claim directly against the subcontractor which supplied the trusses.  A jury awarded no damages against the contractor, but did award damages against the subcontractor.  The subcontractor argued on appeal that the economic loss rule barred the homeowners’ claim.  The North Carolina Court of Appeals affirmed the jury verdict against the subcontractor, holding that the economic loss rule does not bar a negligence claim in the absence of a contract.

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