What Is the Economic Loss Rule?
The issues involving commercial property owners are often more complex and fact-specific than those involving residential property owners. For example, claims of negligence could be barred by terms of one or more contracts between the property owner and the contractor, design professionals and/or subcontractors through the application of the “economic loss rule.” The economic loss rule generally prevents recovery for negligently caused economic losses when the duty breached is part of a contractual duty and the harm suffered is the failure of the contract itself. Economic losses are defined as damaged other than physical harm to persons or property (such as lost profits or returns on investment), although courts have applied the economic loss rule in the commercial property setting to the cost of repair and replacement of property that is the subject of the parties’ contracts.
Most states, along with the U.S. Supreme Court, have adopted some type of economic loss rule. Each jurisdiction’s rule must be carefully analyzed to determine the extent of its applicability to a particular commercial property owner’s situation.
In addition, the parties’ contracts may severely limit the property owner’s recoverable damages. This requires a detailed analysis and consideration of the contracts and their potential impact on the claims that can be pursued and the owner’s recovery before the suit is filed. States’ pre-lawsuit notice of claim or right to repair statutes may also apply differently to commercial properties. Even if you are not the original buyer or your building, you may still have recourse if you discover construction defects on the property.
The economic loss rule, other contractual limitations, and pre-lawsuit notice/repair statutes are just a few examples of the complex, fact-specific issues that have to be addressed at the outset of every commercial property construction defect case. We have extensive experience with these and many other specific issues related to commercial real estate that are important to each case and can effectively represent you as a commercial property owner.
How Much Does a Construction Defects Claim Cost?
Normally, Burg Simpson construction defect attorneys work on a contingency basis. The fee we earn is established as a part of whatever recovery we secure on your behalf. In other words, we only get paid if we are able to secure compensation for you. If you work with us on your construction defect claim, everything will be detailed in a written fee agreement.
Contact a Burg Simpson Construction Defect Lawyer Today
Every client – and every property – is unique. The laws related to commercial property are incredibly complicated and vary by state. Additionally, the laws governing this area of real estate are changing constantly. This is not the sort of case you can navigate on your own. Speak with an experienced construction defects attorneys as soon as possible.
Fill out our free case evaluation form or call us today at (866) 344-7582 to gain a better idea of the circumstances surrounding your case.
