Shaw v. CTVT Motors (CA1 3/28/13)

This holds that the economic-loss rule does not apply to claims under the Consumer Fraud Act.

Defendant repaired Plaintiffs’ car poorly; Plaintiffs sue for various economic losses (loss of value, loss of use, cost of re-repair). Defendant argued that the economic-loss rule barred all but contract claims. The trial court agreed and dismissed.

The Court of Appeals reverses. The economic-loss rule applies to common-law tort claims, not statutory claims. The statute contains no such limitation. The court also doubts that the rule should be applied to a claim of fraud in the inducement.

By CA1 standards this is a pretty crisp analysis, save for some mostly-pointless footnotes; perhaps it was actually written by the pro tem who signed it.

(link to opinion)