Texas General Law

Economic Loss Rule Texas

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This past summer the Texas Supreme Court handed down two decisions regarding the economic loss rule. The decisions, on their face, look to be completely inconsistent with each other – one holding that a subcontractor can be sued for negligence in a breach of a contract action, and the other holding the subcontractor cannot.

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Rogers Townsend - The Economic Loss Rule - March 1, 2013 A new texas supreme court decision in Chapman Custom Homes, Inc. v. Dallas Plumbing Co., 2014 WL 4116839 (Tex. 2014) narrows the stranglehold of the economic loss doctrine (eld) and states that the ELD precludes recovery in tort for economic losses resulting from a party’s failure to perform under a contract when the harm consists only of the …

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In Texas, the economic loss rule has been applied to preclude tort claims in two related contexts: (1) where the losses sought to be recovered are the subject matter of a contract between

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Black, University of Texas; stephanie … share of the total potential loss to taxpayers (otherwise singling these schools ou…

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