July 2009
A significant number of the courts have held that when a contractor or owner/developer suffers damages as a result of errors by a design professional, the economic loss doctrine bars negligence claims, unless such negligence causes either personal injury or damage to “other property.” What constitutes “other property” is often the central issue analyzed by the courts in these types of cases. “Economic loss” is the result of the failure of the product to perform to the level expected by the buyer, which is the core concern of traditional contract law.