{"id":898563,"date":"2021-03-16T15:53:27","date_gmt":"2021-03-16T21:53:27","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898563"},"modified":"2021-03-16T15:53:30","modified_gmt":"2021-03-16T21:53:30","slug":"products-liability-economic-loss-rule","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/products-liability-economic-loss-rule\/","title":{"rendered":"Florida&#8217;s Products Liability Economic Loss Rule Bars Claims Where Only Damage Sustained is to the Building Itself"},"content":{"rendered":"\n<p>Catherine Delorey | <a href=\"http:\/\/abaconstructionforumdivision1.blogspot.com\/2021\/03\/floridas-products-liability-economic.html?utm_source=feedburner&amp;utm_medium=email&amp;utm_campaign=Feed%3A+TheDisputeResolver+%28The+Dispute+Resolver%29\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Forum on Constrution Law<\/a><\/p>\n\n\n\n<p>Can a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/product-liability-usa\/\" target=\"_blank\" rel=\"noreferrer noopener\">products liability claim<\/a> survive the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/economic-loss-rule-north-carolina\/\" target=\"_blank\" rel=\"noreferrer noopener\">economic loss rule<\/a> (\u201cELR\u201d) where the only claimed damage to \u201cother property\u201d is to the finished building itself? If your state takes an \u201cintegrated\u201d approach to the ELR, the answer to this question should be \u201cno.\u201d<\/p>\n\n\n\n<p>In 2711 Hollywood Beach Condominium Association, Inc. v. TRG Holliday, Ltd., Florida\u2019s Third District Court of Appeal provided clarity on the issue of whether the ELR bars a products liability claim where the only damages sought are repairs and replacement to a building system in which the product is a component part. 307 So.3d 869 (Fla. 3d DCA 2020). 2711 Hollywood was decided against the backdrop of the Florida Supreme Court\u2019s decision in Tiara Condo. Ass&#8217;n, Inc. v. Marsh &amp; McLennan Companies, Inc., where the Court limited the ELR to products liability cases. 110 So. 3d 399, 400 (Fla. 2013). The Tiara court reviewed and seemingly cited with approval its prior 1993 decision in Casa Clara Condominium Ass\u2019n., Inc. v. Charley Toppino and Sons, Inc., 620 So.2d 1244 (Fla. 1993) in reaching this decision. Id., 401, 405-406. There, the Court held that the ELR barred a homeowner\u2019s claims against a supplier of allegedly defective concrete, where the only alleged damages were rusting and spalling to the structure of the completed condominium units. Casa Clara Condominium Ass\u2019n., Inc., 620 So.2d at 1245. Despite Tiara\u2019s apparent reliance on Casa Clara, Westlaw\u2019s \u201cKeyCite\u201d system continues to apply a \u201cred flag\u201d warning to the Casa Clara decision.<\/p>\n\n\n\n<p>The 2711 Hollywood decision makes clear that Casa Clara\u2019s holding still applies to product manufacturers and suppliers in Florida. In 2711 Hollywood, the condominium association sued the maker of the component fittings of the condominium\u2019s fire suppression system (\u201cFSS\u201d), claiming that these fittings caused the fire suppression system to leak. 307 So.3d at 870. The association sought damages for future repairs and replacement of the FSS under negligent and strict products liability theories against the fittings maker. Id.<\/p>\n\n\n\n<p>On appeal, the Court affirmed summary judgment entered in favor of the manufacturer based upon Casa Clara. Id. In doing so, it recognized that when a products liability claim arises in the context of real estate, courts are to apply the \u201cobject of the bargain\u201d rule. Id. The focus of this rule is on \u201cthe product purchased by plaintiff,\u201d rather than \u201cthe product sold by the defendant.\u201d Id. Where a product is an \u201cintegral part of the finished product,\u201d (i.e., the building), and the only alleged damages are to the building itself, such damage is not considered injury to \u201cother property.\u201d Id. The FSS fittings were an integral part of the FSS, and the completed building. As such, the ELR applied to bar the Association\u2019s products liability claims, because the only alleged damages were the cost to replace the FSS and resulting repair damages to the building. Id.<\/p>\n\n\n\n<p>The 2711 Hollywood decision also reinforces the applicability of the ELR in circumstances where a purchaser or installer attempts to bring a tort-based products liability claim against a downstream manufacturer or supplier. In 1995, the United States Court of Appeals for the Eleventh Circuit applied the ELR to a homebuilder\u2019s claim against the manufacturer of chemicals applied by the homebuilder to its roof sheathing, which allegedly caused the roofs to deteriorate. Pulte Home Corp. v. Osmose Wood Preserving, Inc., 60 F.3d 734, 736 (11th Cir. 1995). It reasoned that while the homebuilder was required to remove roof components (shingles and untreated plywood) due to defective treated plywood, these components were not \u201cdamaged,\u201d but rather, removed \u201cas a consequence of replacing\u201d damaged, treated plywood. Id. at 742 (citing Casa Clara Condominium Ass\u2019n., Inc., 620 So.2d at 1246).<\/p>\n\n\n\n<p>2711 Hollywood provides needed clarification on the scope of cognizable tort-based products liability claims against building products manufacturers and suppliers in the Florida. Absent a showing of personal injury, or damage to property wholly unconnected with the completed building, such claims should be barred. The 2711 Hollywood decision ensures that products liability claims involving only \u201ceconomic losses\u201d will be dealt with in the manner which best suits them: \u201c[c]ontract law, and the law of warranty in particular.\u201d See Tiara Condo. Ass&#8217;n, Inc., 110 So. 3d at 404.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Catherine Delorey | Forum on Constrution Law Can a products liability claim survive the economic loss rule (\u201cELR\u201d) where the only claimed damage to \u201cother property\u201d is to the finished building itself? If your state takes an \u201cintegrated\u201d approach to the ELR, the answer to this question should be \u201cno.\u201d In 2711 Hollywood Beach Condominium&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/products-liability-economic-loss-rule\/\">Continue reading <span class=\"screen-reader-text\">Florida&#8217;s Products Liability Economic Loss Rule Bars Claims Where Only Damage Sustained is to the Building Itself<\/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":[10918],"tags":[9895,319,11431],"class_list":["post-898563","post","type-post","status-publish","format-standard","hentry","category-product-liability-product-liability","tag-advise-consult","tag-economic-loss-rule","tag-products-liability-claim","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>Florida&#039;s Products Liability Economic Loss Rule Bars Claims Where Only Damage Sustained is to the Building Itself - Advise &amp; 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