5th Circ. Says Emerson Not Liable For $8M Turbine Damage

Law360 (April 8, 2020, 9:20 PM EDT) -- An Emerson Electric Co. unit was required to fix faulty software but doesn't have to pay $8 million to cover the damage that software caused to a Texas utility's turbine, the Fifth Circuit said Wednesday in a published opinion.

The three-judge panel affirmed a lower court’s finding that Emerson Process Management Power & Water Solutions Inc. abided by its contract with public utility Golden Spread Electric Cooperative Inc. after software Emerson designed malfunctioned causing damage to the utilities equipment, saying tort claims are barred under Texas law’s economic loss rule.

The risk of damage could have been anticipated so liability “is...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!