Ky. Appeals Court Bolsters Economic Loss Rule

Law360, New York (August 25, 2009, 7:39 PM EDT) -- A Kentucky appeals court has shored up precedent for the state’s Economic Loss Rule, in a decision on an insurance company's product liability suit over a $2.8 million piece of industrial equipment that failed and destroyed itself.

The Court of Appeals for the Commonwealth of Kentucky on Friday bolstered an earlier decision from the same court over whether the doctrine – which generally bars claims in cases where a product only damages itself – can be applied to cases in that state.

In 2004, the appeals...
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