Moorman doctrine in Illinois

2026“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.” Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (citing Moorman, 91 Ill. 2d at 88 , - 15 - No. 1-25-0705 and citing Community Bank of Trenton v. Schnuck Markets, Inc., 887 F.3d 803, 812 (7th Cir. 2018)).

2026“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.” Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (citing Moorman, 91 Ill. 2d at 88 , - 15 - No. 1-25-0705 and citing Community Bank of Trenton v. Schnuck Markets, Inc., 887 F.3d 803, 812 (7th Cir. 2018)).

2025In the alternative, plaintiffs argue that if the Moorman doctrine applies, their claims qualify for the doctrine’s exceptions because (1) Ferrara’s data breach was a sudden event that harmed plaintiffs and caused emotional distress, and the damage was calamitous because the breach compromised the PII of thousands of employees, and (2) plaintiffs’ damages were proximately caused by Ferrara’s intentional, false representation that it would protect plaintiffs’ PII from loss, misuse, or unauthorized disclosure, but Ferrara never implemented the necessary security to meet that promise. ¶ 48 There a

2025In the alternative, plaintiffs argue that if the Moorman doctrine applies, their claims qualify for the doctrine’s exceptions because (1) Ferrara’s data breach was a sudden event that harmed plaintiffs and caused emotional distress, and the damage was calamitous because the breach compromised the PII of thousands of employees, and (2) plaintiffs’ damages were proximately caused by Ferrara’s intentional, false representation that it would protect plaintiffs’ PII from loss, misuse, or unauthorized disclosure, but Ferrara never implemented the necessary security to meet that promise. ¶ 48 There a

2021Anderson Electric, Inc. v. Ledbetter Erection Corp., 115 Ill. 2d 146, 153 (1986) (plaintiff seeking to recover solely economic losses due to defeated expectations of a commercial bargain cannot recover in tort, regardless of the plaintiff’s inability to recover in contract). ¶ 56 Outside of the contract and products-liability areas, and as relevant here, the supreme court has held that the Moorman doctrine applies to nuisance claims.

2021Anderson Electric, Inc. v. Ledbetter Erection Corp., 115 Ill. 2d 146, 153 (1986) (plaintiff seeking to recover solely economic losses due to defeated expectations of a commercial bargain cannot recover in tort, regardless of the plaintiff’s inability to recover in contract). ¶ 56 Outside of the contract and products-liability areas, and as relevant here, the supreme court has held that the Moorman doctrine applies to nuisance claims.

2021See Moorman Manufacturing Co. v. National Tank Co., 91 Ill. 2d 69 (1982) (tort actions seeking purely economic loss cannot lie); 2314 Lincoln Park West Condominium Ass’n v. Mann, Gin, Ebel & Frazier, Ltd., 136 Ill. 2d 302, 311-13 (1990) (Moorman doctrine barred tort actions for purely economic loss against architect); Fireman’s Fund Insurance Co. v. SEC Donohue, Inc., 176 Ill. 2d 160, 168-70 (1997) (unable to “find any 6 No. 1-20-0594 substantive difference between architects and engineers for purposes of the economic loss rule,” holding that Moorman barred tort actions for purely economic los

2021See 2314 Lincoln Park West Condominium Ass’n, 136 Ill. 2d at 311-13 (Moorman doctrine barred tort action against architect for negligent design).

2025App. 3d 346, 351 (2002) (Moorman doctrine is founded on the theory that “parties to a contract may allocate their risks by agreement and do not need the special protections of tort law to recover damages caused by a breach of contract”). ¶ 45 The Moorman doctrine arose in the context of products liability, but “Illinois applies Moorman to services as well as the sale of goods because both business contexts provide ‘[ “]the ability to comprehensively define a relationship[” ]’ by contract.” Schnuck Markets, Inc., 887 F.3d at 813 (quoting Fireman’s Fund Insurance Co. v. SEC Donohue, Inc., 176 Il

2025App. 3d 346, 351 (2002) (Moorman doctrine is founded on the theory that “parties to a contract may allocate their risks by agreement and do not need the special protections of tort law to recover damages caused by a breach of contract”). ¶ 45 The Moorman doctrine arose in the context of products liability, but “Illinois applies Moorman to services as well as the sale of goods because both business contexts provide ‘[ “]the ability to comprehensively define a relationship[” ]’ by contract.” Schnuck Markets, Inc., 887 F.3d at 813 (quoting Fireman’s Fund Insurance Co. v. SEC Donohue, Inc., 176 Il

1992Board of Education v. A, C & S, Inc. (1989), 131 Ill. 2d 428 , 546 N.E.2d 580 (Moorman doctrine does not apply where damage to the defective product was due to a sudden and dangerous occurrence).

1992Board of Education v. A, C & S, Inc. (1989), 131 Ill. 2d 428 , 546 N.E.2d 580 (Moorman doctrine does not apply where damage to the defective product was due to a sudden and dangerous occurrence).

2025App. 3d 346, 351 (2002) (Moorman doctrine is founded on the theory that “parties to a contract may allocate their risks by agreement and do not need the special protections of tort law to recover damages caused by a breach of contract”). ¶ 45 The Moorman doctrine arose in the context of products liability, but “Illinois applies Moorman to services as well as the sale of goods because both business contexts provide ‘[ “]the ability to comprehensively define a relationship[” ]’ by contract.” Schnuck Markets, Inc., 887 F.3d at 813 (quoting Fireman’s Fund Insurance Co. v. SEC Donohue, Inc., 176 Il

2025App. 3d 346, 351 (2002) (Moorman doctrine is founded on the theory that “parties to a contract may allocate their risks by agreement and do not need the special protections of tort law to recover damages caused by a breach of contract”). ¶ 45 The Moorman doctrine arose in the context of products liability, but “Illinois applies Moorman to services as well as the sale of goods because both business contexts provide ‘[ “]the ability to comprehensively define a relationship[” ]’ by contract.” Schnuck Markets, Inc., 887 F.3d at 813 (quoting Fireman’s Fund Insurance Co. v. SEC Donohue, Inc., 176 Il

2014Thus, the court concluded that "[a]pplication of the Moorman doctrine limiting recovery of purely economic losses to contract *** is inappropriate where a relationship results in something intangible." Id. at 164 ; see also Collins v. Reynard, 154 Ill. 2d 48, 52 (1992) (finding attorney malpractice claims are excepted from application of the economic loss doctrine). - 24 - 2014 IL App (1st) 130307 ¶ 59 In 2314 Lincoln Park West Condominium Ass'n v. Mann, Gin, Ebel & Frazier, Ltd., 136 Ill. 2d 302, 315 (1990), the supreme court noted other situations in which this court has distinguished Moorma

2014Thus, the court concluded that "[a]pplication of the Moorman doctrine limiting recovery of purely economic losses to contract *** is inappropriate where a relationship results in something intangible." Id. at 164 ; see also Collins v. Reynard, 154 Ill. 2d 48, 52 (1992) (finding attorney malpractice claims are excepted from application of the economic loss doctrine). - 24 - 2014 IL App (1st) 130307 ¶ 59 In 2314 Lincoln Park West Condominium Ass'n v. Mann, Gin, Ebel & Frazier, Ltd., 136 Ill. 2d 302, 315 (1990), the supreme court noted other situations in which this court has distinguished Moorma

2016See Moorman, 91 Ill. 2d at 88 ; see also In re Illinois Bell Switching Station Litigation, 161 Ill. 2d 233, 241 (1994).

2016See Moorman, 91 Ill. 2d at 7 No. 1-15-1459 86, 88-89; see also In re Illinois Bell Switching Station Litigation, 161 Ill. 2d at 240-41 ; In re Chicago Flood Litigation, 176 Ill. 2d at 199 ; 1324 W.

2002The Moorman doctrine provides that “a plaintiff cannot recover solely economic losses in tort.” Redarowicz v. Ohlendorf, 92 Ill. 2d 171, 176 , 441 N.E.2d 324, 326 (1982); Moorman, 91 Ill. 2d at 86 , 435 N.E.2d at 451 .

2002The Moorman doctrine provides that “a plaintiff cannot recover solely economic losses in tort.” Redarowicz v. Ohlendorf, 92 Ill. 2d 171, 176 , 441 N.E.2d 324, 326 (1982); Moorman, 91 Ill. 2d at 86 , 435 N.E.2d at 451 .

2006Vogelzang responds to Carr's arguments by asserting he owed no duty to Carr and by contending, under First Midwest Bank, N.A. v. Stewart Title Guaranty Co., 218 Ill.2d 326 , 300 Ill.Dec. 69 , 843 N.E.2d 327 (2006), the fraudulent-misrepresentation exception to the Moorman doctrine is inapplicable because Vogelzang is not in the business of supplying information.

2006Vogelzang responds to Carr's arguments by asserting he owed no duty to Carr and by contending, under First Midwest Bank, N.A. v. Stewart Title Guaranty Co., 218 Ill.2d 326 , 300 Ill.Dec. 69 , 843 N.E.2d 327 (2006), the fraudulent-misrepresentation exception to the Moorman doctrine is inapplicable because Vogelzang is not in the business of supplying information.

2005App. 3d 18 , 719 N.E.2d 288 (applying Moorman doctrine to services of architect and engineer).

2005See, e.g., Tolan & Son [, Inc. v. KLLM, Architects, Inc. ], 308 Ill.App.3d 18 [ 241 Ill.Dec. 427 ], 719 N.E.2d 288 [ (1999) ] (applying Moorman doctrine to services of architect and engineer).

2023The Moorman doctrine is founded on the theory that “parties to a contract may allocate their risks by agreement and do not need the special protections of tort law to recover damages caused by a breach of contract.” Mars, Inc. v. Heritage Builders of Effingham, Inc., 327 Ill.

2023The Moorman doctrine is founded on the theory that “parties to a contract may allocate their risks by agreement and do not need the special protections of tort law to recover damages caused by a breach of contract.” Mars, Inc. v. Heritage Builders of Effingham, Inc., 327 Ill.

2026“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.” Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (citing Moorman, 91 Ill. 2d at 88 , - 15 - No. 1-25-0705 and citing Community Bank of Trenton v. Schnuck Markets, Inc., 887 F.3d 803, 812 (7th Cir. 2018)).

2026“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.” Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (citing Moorman, 91 Ill. 2d at 88 , - 15 - No. 1-25-0705 and citing Community Bank of Trenton v. Schnuck Markets, Inc., 887 F.3d 803, 812 (7th Cir. 2018)).

2026“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.” Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (citing Moorman, 91 Ill. 2d at 88 , - 15 - No. 1-25-0705 and citing Community Bank of Trenton v. Schnuck Markets, Inc., 887 F.3d 803, 812 (7th Cir. 2018)).

2026“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.” Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (citing Moorman, 91 Ill. 2d at 88 , - 15 - No. 1-25-0705 and citing Community Bank of Trenton v. Schnuck Markets, Inc., 887 F.3d 803, 812 (7th Cir. 2018)).

2025See Flores, 2023 IL App (1st) 230140, ¶ 25 (allegations of two fraudulent charges and being subject to an increase of spam messages were sufficient to demonstrate injuries); Dieffenbach, 887 F.3d at 828 (“the value of one’s own time needed to set things straight” after a data breach is an injury and “can justify money damages”). ¶ 43 Third, Ferrara argues that the Moorman doctrine applies and forecloses plaintiffs’ negligence claims for purported economic losses.

2025See Flores, 2023 IL App (1st) 230140, ¶ 25 (allegations of two fraudulent charges and being subject to an increase of spam messages were sufficient to demonstrate injuries); Dieffenbach, 887 F.3d at 828 (“the value of one’s own time needed to set things straight” after a data breach is an injury and “can justify money damages”). ¶ 43 Third, Ferrara argues that the Moorman doctrine applies and forecloses plaintiffs’ negligence claims for purported economic losses.

2021Fox Associates, Inc. v. Robert Half International, Inc., 334 Ill.

2021Fox Associates, Inc. v. Robert Half International, Inc., 334 Ill.

2019Compare Donovan v. County of Lake, 2011 IL App (2d) 100390, ¶ 54 (holding that no sudden or calamitous event occurred where the alleged water contamination “manifested itself over a five-year period”), with Board of Education of City of Chicago v. A, C & S, Inc., 131 Ill. 2d 428, 450 (1989) (recognizing that preventing “recovery in tort merely because the physical harm did not occur suddenly would defeat the underlying purposes of strict products liability”).

2019Compare Donovan v. County of Lake, 2011 IL App (2d) 100390, ¶ 54 (holding that no sudden or calamitous event occurred where the alleged water contamination “manifested itself over a five-year period”), with Board of Education of City of Chicago v. A, C & S, Inc., 131 Ill. 2d 428, 450 (1989) (recognizing that preventing “recovery in tort merely because the physical harm did not occur suddenly would defeat the underlying purposes of strict products liability”).

2019Golden Rule Insurance Co. v. Schwartz, 203 Ill. 2d 456, 469 (2003). ¶ 40 Nor do we find persuasive the City’s argument that the Moorman doctrine applies to bar plaintiffs’ claim.

2019Golden Rule Insurance Co. v. Schwartz, 203 Ill. 2d 456, 469 (2003). ¶ 40 Nor do we find persuasive the City’s argument that the Moorman doctrine applies to bar plaintiffs’ claim.

1982The Moorman court stated that “economic loss is recoverable where one intentionally makes false representations (Soules v. General Motors Corp. (1980), 79 Ill. 2d 282 ), and where one who is in the business of supplying information for the guidance of others in their business transactions makes negligent representations (Rozny v. Marnul (1969), 43 Ill. 2d 54 , 250 N.E.2d 656 ).” ( 91 Ill. 2d 69, 88-89 , 435 N.E.2d 443, 452 .) The plaintiff argues that its cause of action is based upon negligent misrepresentation and therefore falls within the second above-quoted exception to the Moorman rule.

1982The Moorman court stated that “economic loss is recoverable where one intentionally makes false representations (Soules v. General Motors Corp. (1980), 79 Ill. 2d 282 ), and where one who is in the business of supplying information for the guidance of others in their business transactions makes negligent representations (Rozny v. Marnul (1969), 43 Ill. 2d 54 , 250 N.E.2d 656 ).” ( 91 Ill. 2d 69, 88-89 , 435 N.E.2d 443, 452 .) The plaintiff argues that its cause of action is based upon negligent misrepresentation and therefore falls within the second above-quoted exception to the Moorman rule.

2026See Sienna Court Condominium Ass’n, 2018 IL 122022, ¶ 20 . ¶ 54 “The Moorman doctrine is intended to preserve the distinction between tort and contract.” Id. ¶ 21.

2026See Sienna Court Condominium Ass’n, 2018 IL 122022, ¶ 20 . ¶ 54 “The Moorman doctrine is intended to preserve the distinction between tort and contract.” Id. ¶ 21.

2025Economic loss is defined as “damages for inadequate value, costs of repair and replacement of the defective product, or consequent loss of profits—without any claim of personal injury or damage to other property.” (Internal quotation marks omitted.) Moorman, 91 Ill. 2d at 82 . ¶ 44 The traditional rationale for the Moorman doctrine is that courts can “trust the commercial parties interested in a particular activity to work out an efficient allocation of risks among themselves in their contracts” (Schnuck Markets, Inc., 887 F.3d at 812), without having to resort to tort law, which is better res

2025Economic loss is defined as “damages for inadequate value, costs of repair and replacement of the defective product, or consequent loss of profits—without any claim of personal injury or damage to other property.” (Internal quotation marks omitted.) Moorman, 91 Ill. 2d at 82 . ¶ 44 The traditional rationale for the Moorman doctrine is that courts can “trust the commercial parties interested in a particular activity to work out an efficient allocation of risks among themselves in their contracts” (Schnuck Markets, Inc., 887 F.3d at 812), without having to resort to tort law, which is better res

2019The doctrine, derived from Moorman Manufacturing Co. v. National Tank Co., 1 The City also cites a Michigan case, Henry v. Dow Chemical Co., 701 N.W.2d 684 (Mich. 2005), in support of its argument that medical monitoring is not a cognizable claim for plaintiffs’ injuries.

2019The doctrine, derived from Moorman Manufacturing Co. v. National Tank Co., 1 The City also cites a Michigan case, Henry v. Dow Chemical Co., 701 N.W.2d 684 (Mich. 2005), in support of its argument that medical monitoring is not a cognizable claim for plaintiffs’ injuries.