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Expert Analysis

A Texas Framework For Extending The Economic Loss Rule

Law360, New York (July 31, 2014, 10:19 AM EDT) -- Construction contractors have long tried to directly sue the owners' professional design firms when faulty plans or related services cause economic losses such as increased costs from delays and disruptions and out-of-pocket costs, usually without success. At least two Texas cases in recent years brought contractors hope that there might be a viable path to professional designers' checkbooks through tort claims like negligent misrepresentation. A unanimous Texas Supreme Court, however, just took this hope away in LAN/STV v. Martin K. Eby Constr. Co.[1]...

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