economic loss rule in Ohio

2024See, Campbell v. Krupp, 195 Ohio App.3d 573 , 2011- Ohio-2694, 961 N.E.2d 205, ¶ 16 (6th Dist.) See also, Eysoldt v. ProScan Imaging, 194 Ohio App.3d 630 , 2011-Ohio-2359 , 957 N.E.2d 780, ¶21 (1st Dist.) (finding the economic loss rule does not apply to intentional torts, as they are breaches of duties beyond those created by contract).

2024See, Campbell v. Krupp, 195 Ohio App.3d 573 , 2011- Ohio-2694, 961 N.E.2d 205, ¶ 16 (6th Dist.) See also, Eysoldt v. ProScan Imaging, 194 Ohio App.3d 630 , 2011-Ohio-2359 , 957 N.E.2d 780, ¶21 (1st Dist.) (finding the economic loss rule does not apply to intentional torts, as they are breaches of duties beyond those created by contract).

2024See, Campbell v. Krupp, 195 Ohio App.3d 573 , 2011- Ohio-2694, 961 N.E.2d 205, ¶ 16 (6th Dist.) See also, Eysoldt v. ProScan Imaging, 194 Ohio App.3d 630 , 2011-Ohio-2359 , 957 N.E.2d 780, ¶21 (1st Dist.) (finding the economic loss rule does not apply to intentional torts, as they are breaches of duties beyond those created by contract).

2024See, Campbell v. Krupp, 195 Ohio App.3d 573 , 2011- Ohio-2694, 961 N.E.2d 205, ¶ 16 (6th Dist.) See also, Eysoldt v. ProScan Imaging, 194 Ohio App.3d 630 , 2011-Ohio-2359 , 957 N.E.2d 780, ¶21 (1st Dist.) (finding the economic loss rule does not apply to intentional torts, as they are breaches of duties beyond those created by contract).

2026Co. at ¶ 68. {¶31} To be sure, “[n]ot all tort claims fall under the economic loss rule.” Zak v. Airhart, 2021-Ohio-4399 , ¶ 44 (6th Dist.). “‘A plaintiff may pursue such a -17- Case No. 8-26-02 tort claim if it is “based exclusively upon [a] discrete, preexisting duty in tort and not upon any terms of a contract or rights accompanying privity.”’” Id., quoting Windsor Medical Center, Inc. v. Time Warner Cable, Inc., 2021-Ohio-158, ¶ 27 (5th Dist.), quoting Corporex Dev. & Constr.

2024We examine our decision in Windsor Medical Center, Inc. v. Time Warner Cable, Inc., 2021-Ohio-158 , 167 N.E.3d 23 (5th Dist.), which thoroughly discusses the economic loss doctrine. {¶38} In that case, Windsor Medical, a skilled nursing and senior living center, brought an action against Time Warner Cable, nka Spectrum, which by a contractual agreement provided the facility's telephone, internet, and cable service.

2022Assn., 54 Ohio St.3d 1, 3 , 560 N.E.2d 206 (1990), quoting Prosser & Keeton, Law of Torts, 657, Section 92 (5 Ed.1984). {¶7} The issue in this case is whether the Breazeales suffered economic loss, and thus their negligence claims against IDE would be barred under the economic- loss rule, or whether they suffered property loss, to which the economic-loss rule would not apply.

2022Assn., 54 Ohio St.3d 1, 3 , 560 N.E.2d 206 (1990), quoting Prosser & Keeton, Law of Torts, 657, Section 92 (5 Ed.1984). {¶7} The issue in this case is whether the Breazeales suffered economic loss, and thus their negligence claims against IDE would be barred under the economic- loss rule, or whether they suffered property loss, to which the economic-loss rule would not apply.

2021It remains the particular province of the law of contracts.’” Floor Craft, supra, at 3 , quoting Sensenbrenner, supra. {¶33} In effect, the economic-loss rule separates contract and tort claims by preventing a plaintiff from bringing a tort claim when the matter is properly resolved in contract.

2020It remains the particular province of the law of contracts.’” Floor Craft at 7, quoting Sensenbrenner v. Rust, Orling & Neale Architects, Inc., 374 S.E.2d 55, 58 (Va.1988). {¶ 21} Regarding product liability claims, the Supreme Court of Ohio has examined the economic-loss rule and stated that a commercial buyer seeking recovery from the seller for economic losses resulting from damage to the defective product itself may maintain a contract action for breach of warranty under the Uniform Commercial Code; however, in the absence of injury to persons or damage to other 11. property the commercial

2022Id. at paragraph two of the syllabus (“A commercial buyer seeking recovery from the seller for economic losses resulting from damage to the defective product itself may maintain a contract action for breach of warranty under the Uniform Commercial Code; however, in the absence of injury to persons or damage to other property, the commercial buyer may not recover for economic losses premised on tort theories of strict liability or negligence”). {¶ 27} The economic-loss doctrine is based on differences between tort law and contract law and it encompasses several key concepts.

2020Assn., 54 Ohio St.3d 1, 3 , 560 N.E.2d 206 (1990). 10. “‘[T]he well-established general rule is that a plaintiff who has suffered only economic loss due to another’s negligence has not been injured in a manner which is legally cognizable or compensable.’” Chemtrol at 44, quoting Nebraska Innkeepers, Inc. v. Pittsburgh–Des Moines Corp., 345 N.W.2d 124, 126 (Iowa 1984). {¶ 20} The economic-loss rule “stems from the recognition of a balance between tort law, designed to redress losses suffered by breach of a duty imposed by law to protect societal interests, and contract law, which holds that ‘pa

2022If the purchaser of an integrated product could sue the manufacturer of a defective component for damage to the integrated product, then “the purchaser would be able to circumvent the economic loss rule by recovering in tort instead of being limited to contract remedies.” HDM Flugservice GmbH v. Parker Hannifin Corp., 332 F.3d 1025, 1031 (6th Cir.2003). “ ‘Since all but the very simplest of machines have component parts, [a contrary] holding would require a finding of “property damage” in virtually every case where a product damages itself.

2020Id. {¶ 25} Relying upon the holding in HDM Flugservice, federal district courts in Ohio have similarly concluded that damages to a final integrated product arising out of a defect in one of the product’s components do not constitute injury to other property and are thus only recoverable in contract under the economic-loss rule.

2021Bd. of Commrs., 23 Ohio St.3d 69, 73 , 491 N.E.2d 1101 (1986). {¶26} The economic loss rule generally prevents recovery in tort of damages for purely economic loss.

2021Bd. of Commrs., 23 Ohio St.3d 69, 73 , 491 N.E.2d 1101 (1986). {¶26} The economic loss rule generally prevents recovery in tort of damages for purely economic loss.

2025KSMAC Holdings, Ltd. v. Ice Zone Realty, Ltd., 2022-Ohio-1456, ¶ 51 (7th Dist.), citing Cohen v. Lamko, Inc., 10 Ohio St.3d 167, 169 (1984). {¶54} Summary judgment is appropriate on a fraud claim based on the economic loss doctrine where the claim is based on a breach of contract.

2025KSMAC Holdings, Ltd. v. Ice Zone Realty, Ltd., 2022-Ohio-1456, ¶ 51 (7th Dist.), citing Cohen v. Lamko, Inc., 10 Ohio St.3d 167, 169 (1984). {¶54} Summary judgment is appropriate on a fraud claim based on the economic loss doctrine where the claim is based on a breach of contract.

2025Co. v. Ironics, Inc., ¶ 88 (Dewine, J., concurring in judgment only) (noting that "[t]he majority's musings" about the economic-loss doctrine and the integrated-systems rule were non-binding dictum because none of the majority's ponderings were "necessary to resolve this dispute about the meaning of a contract"); and State v. Gwynne, 2019-Ohio-4761, ¶ 41 (Kennedy, J. and DeWine, J., concurring) (noting that the court's "ruminating" on an issue that was not properly before the court in a case decided several years earlier in 2016 rendered its discussion of that unrelated issue non-binding dictu

2024See also Theuerkauf v. United Vaccines Div. of Harlan Sprague Dawley, Inc., 821 F.Supp. 1238, 1242 (W.D.

2022The economic-loss doctrine therefore prevents “the tortification of contract law.” Annett Holdings, Inc. v. Kum & Go, L.C., 801 N.W.2d 499, 503 (Iowa 2011). {¶ 29} The integrated-system rule helps determine whether the “other property” exception to the economic-loss doctrine applies in situations in which a defective component causes damage to a multicomponent product into which it is incorporated.

2022But while it may conceivably interest some to know that the economic-loss doctrine “prevents ‘the tortification of contract law,’ ” majority opinion at ¶ 28, quoting Annett Holdings, Inc. v. Kum & Go, L.C., 801 N.W.2d 499, 503 (Iowa 2011), or that the integrated-systems rule preserves the “ ‘ “distinction between warranty and strict products liability,” ’ ” id. at ¶ 30, quoting E.

2022See id. at 867, 872-873 (acknowledging that the integrated-system rule is designed to ensure that the economic-loss doctrine is not circumvented, thereby protecting parties’ ability to “set the terms of their own agreements”); Daanen & Janssen, Inc. v. Cedarapids, Inc., 216 Wis.2d 395 , 573 N.W.2d 842, ¶ 13 (1998) (stating that the economic-loss doctrine is designed to “protect commercial parties’ freedom to allocate economic risk by contract”). 16 January Term, 2022 {¶ 32} In fact, applying the rule here to bar coverage would undermine the principle that parties to an agreement should be allo

2022See id. at 867, 872-873 (acknowledging that the integrated-system rule is designed to ensure that the economic-loss doctrine is not circumvented, thereby protecting parties’ ability to “set the terms of their own agreements”); Daanen & Janssen, Inc. v. Cedarapids, Inc., 216 Wis.2d 395 , 573 N.W.2d 842, ¶ 13 (1998) (stating that the economic-loss doctrine is designed to “protect commercial parties’ freedom to allocate economic risk by contract”). 16 January Term, 2022 {¶ 32} In fact, applying the rule here to bar coverage would undermine the principle that parties to an agreement should be allo

2022The doctrine does not determine insurance coverage, which turns on the policy language” [emphasis added]); 1325 N. Van Buren, L.L.C. v. T- 3 Group, Ltd., 293 Wis.2d 410 , 2006 WI 94 , 716 N.W.2d 822, ¶ 59 (“although the economic loss doctrine may limit a party to contract rather than tort remedies, it does not determine insurance coverage” [emphasis added]).

2022The doctrine does not determine insurance coverage, which turns on the policy language” [emphasis added]); 1325 N. Van Buren, L.L.C. v. T- 3 Group, Ltd., 293 Wis.2d 410 , 2006 WI 94 , 716 N.W.2d 822, ¶ 59 (“although the economic loss doctrine may limit a party to contract rather than tort remedies, it does not determine insurance coverage” [emphasis added]).