Appeals Court Says Economic Loss Rule Bars Damages Claim

Law360, New York (March 14, 2013, 7:49 PM EDT) -- A Colorado appeals court on Thursday found the economic loss rule bars a cold storage company from recovering damages from a contractor whose employee allegedly caused a damaging ammonia explosion, upholding a lower court’s decision.

Plaintiff Engeman Enterprises LLC alleged Tolin Mechanical Systems Co. was negligent in handling the ammonia that was supposed to replenish the cold storage system but ended up exploding after a Tolin employee allegedly installed the hoses incorrectly, and that the economic loss rule should not apply in this case, but the...
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