{"id":2252,"date":"2013-11-15T06:17:19","date_gmt":"2013-11-15T13:17:19","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=2252"},"modified":"2013-11-12T11:17:49","modified_gmt":"2013-11-12T18:17:49","slug":"arizona-supreme-court-limits-economic-loss-rule-application","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/arizona-supreme-court-limits-economic-loss-rule-application\/","title":{"rendered":"Arizona Supreme Court Limits Economic Loss Rule Application"},"content":{"rendered":"<p>Tony Lehman &#8211; November 5, 2013<\/p>\n<p>In\u00a0Sullivan v. Pulte Home Corp., 306 P. 3d 1 (Ariz. 2013), the\u00a0Arizona Supreme Court considered whether the economic loss rule should apply to a\u00a0claim for negligent construction raised by the second purchaser of a house.<\/p>\n<p>The Sullivans purchased their home from the original purchaser three years after the house was finished and occupied. Six years later, the Sullivans discovered problems with a retaining wall in the backyard. \u00a0The Sullivans notified Pulte regarding the issue, but Pulte disclaimed any responsibility for the issue. \u00a0In response, the Sullivans sued Pulte and alleged consumer fraud, negligent nondisclosure, negligence\u00a0per se, negligent misrepresentation, and breach of implied warranty.<\/p>\n<p>The trial court dismissed the entire lawsuit. \u00a0According to the trial court, Arizona&#8217;s eight-year statute of repose barred\u00a0the warranty claim (which was asserted nine years after the original purchase). The economic loss rule\u00a0barred the remaining tort claims. \u00a0The Court of Appeals reversed the\u00a0trial court&#8217;s\u00a0decision as to certain negligence claims.<\/p>\n<p>The Arizona Supreme Court agreed with the Court of Appeals, noting that the Sullivans never entered into any contracts with Pulte directly. \u00a0Even though the Sullivans had contractual remedies available to them had they filed suit prior to the expiration of the statute of repose, the Sullivans did not have the opportunity to negotiate the scope of any warranties that might otherwise have barred the tort claims. \u00a0As a result, the Court held that the proper outcome in this case was to allow the Sullivans&#8217; tort claims to proceed to discovery and adjudication.<\/p>\n<p>via <a href=\"http:\/\/abaconstructionforumdivision1.blogspot.com\/2013\/11\/arizona-supreme-court-limits-economic.html?utm_source=feedburner&amp;utm_medium=email&amp;utm_campaign=Feed%3A+TheDisputeResolver+%28The+Dispute+Resolver%29\">The Dispute Resolver: Arizona Supreme Court Limits Economic Loss Rule Application<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tony Lehman &#8211; November 5, 2013 In\u00a0Sullivan v. Pulte Home Corp., 306 P. 3d 1 (Ariz. 2013), the\u00a0Arizona Supreme Court considered whether the economic loss rule should apply to a\u00a0claim for negligent construction raised by the second purchaser of a house. The Sullivans purchased their home from the original purchaser three years after the house&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/arizona-supreme-court-limits-economic-loss-rule-application\/\">Continue reading <span class=\"screen-reader-text\">Arizona Supreme Court Limits Economic Loss Rule Application<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,172],"tags":[452,319,453],"class_list":["post-2252","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-law-2","tag-arizona-supreme-court","tag-economic-loss-rule","tag-negligent-construction","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Arizona Supreme Court Limits Economic Loss Rule Application - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/arizona-supreme-court-limits-economic-loss-rule-application\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arizona Supreme Court Limits Economic Loss Rule Application - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Tony Lehman &#8211; November 5, 2013 In\u00a0Sullivan v. 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