Court Rules information provided from Inspection and Testing that is used for construction remains protected by Economic Loss Doctrine

Spray fireproofing on an I-beamThe GC hired Piasa to install drywall frame, spray-on fireproofing as well as acoustical and EIFS work.  The GC also hired Patriot to provide inspection and testing of the fireproofing material.  Part of Patriot’s contract required Patriot to report and deficiencies in the fireproofing to the GC and Piasa.  The project specs and manual called for this testing to occur as the fireproofing was installed and for prompt reporting of any deficiencies.

Piasa installed fireproofing and Patriot inspected it.

Piasa, was subcontractor on a project and was terminated by the GC.  Piasa filed this complaint against the GC for breach of contract and the surety for requesting monies it claimed it was owed, after a counterclaim was filed against Piasa, Piasa sued Patriot for negligent misrepresentation alleging that any defects it might be found liable for with regard to the fireproofing should be passed on to Patriot because Patriot had the responsibility for the testing.

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The Economic Loss Doctrine Bars Suits For Negligence Where Only The Building Gets Damaged?

CASE STX480.jpgA recent Illinois Third District opinion has helped to clarify the economic loss doctrine’s application in the state and it’s a necessary read for any material suppliers and subcontractors.

The facts of Westfield Ins. Co. v. Birkey’s Farm Store, Inc. (3d Dist. Case no. 3-09-0501) are relatively easy to follow.  Plaintiff’s bought a tractor that had an added auto steer system from Birkey’s.  The tractor was made by CNH.  The tractor caught fire and was extensively damaged.  Plaintiff’s sued Birkey’s and CNH alleging counts in negligence and product liability amongst others.  Birkey’s and CNH moved to dismiss the negligence and product liability claims arguing they were barred by Illinois’ application of the economic loss doctrine.

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