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...

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