Economic Loss Rule Not Applicable

In a recent Florida Supreme Court decision, the protection afforded to non-professional service providers against claims for solely economic damages has been erased.  For many years, the economic loss rule [ELR] has prevented claimants from suing service providers for negligence which resulted in only economic damages.  The exception to this rather problematic rule was for a claimant who may foreseeably be injured or sustain an economic loss proximately caused by the negligent performance of a contractual duty of an architect, engineer, or other professional service provider.  Until recently, the ELR has been used to prevent recovery from non-professional service providers, sometimes leaving the claimant with no other relief against the actual wrongdoer.  That has all changed now that the Court has determined that “the [ELR] does not apply in the services context unless a contract exists and none of the established exceptions to the rule apply.”  Indeed, this will open the door to additional claims against non-professional service providers who negligently perform their services, no matter what degree of schooling is required from them to apply their trade.

 

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