The folks who eroded the privity rule in A.R. Moyer v. Graham have now
abolished the economic loss rule in Tiara Condominium Ass'n v. Marsh &
McClennan. The decision, issued March 7, 2013 by the
Florida Supreme Court, is blunt: "We . . . hold that the
application of the economic loss rule is limited to products
liability cases. Therefore, we recede from prior case law to
the extent that it is inconsistent with this holding."
Wow!
This particular case arose when a condo association sued its
broker because the condo had less insurance coverage than expected,
a fact discovered after it undertook hurricane damage repair work
that cost more than the available coverage. The facts of this
case are less significant, though, than the sweeping decision of
the Florida Supreme Court. The Florida high court called the
economic loss rule "a judicially created doctrine that sets
forth the circumstances under which a tort action is prohibited if
the only damages suffered are
