Texas Causes of Action & Affirmative Defenses

Texas Causes of Action & Affirmative Defenses

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Thursday, June 30, 2011

The Economic Loss Rule

SIGNIFICANCE OF THE ECONOMIC LOSS RULE

Texas Supreme Court cite on economic loss rule:

The economic-loss rule generally precludes recovery in tort for economic losses resulting from the failure of a party to perform under a contract. Lamar Homes, Inc. v. Mid-Continent Cas. Co., 242 S.W.3d 1, 12 (Tex. 2007).

When the only loss or damage is to the subject matter of the contract, the plaintiff’s action is ordinarily on the contract. Sw. Bell Tel. Co. v. DeLanney, 809 S.W.2d 493, 494 (Tex. 1991).

SOURCE: Houston Court of Appeals - 14-10-00351-CV - 6/30/11


RELATED LEGAL CONCEPTS: breach of contract vs. tort, contractual obligations vs. obligations imposed by law, contract and non-contract causes of action

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