The “economic loss doctrine” prohibits a plaintiff from recovering in tort where a defendant’s product causes purely monetary loss. While this principle may be stated easily enough, applying it can be more difficult. To offer but one illustration, the New Jersey Supreme Court currently is considering the extent to which the economic loss doctrine applies to residential purchases of real estate, a topic explored in this article.
Earlier this year, the Appellate Division considered a case involving the economic loss doctrine and a home purchase. In Marrone v. Greer & Polman Constr., Inc ., 405 N.J. Super. 288 (App. Div. 2009), the plaintiffs purchased a house from the previous residential owners. The plaintiffs alleged that after they moved in, they discovered that the stucco-like siding, Exterior Insulation Finish System (“EIFS”), was not water-tight and therefore defective. The plaintiffs sued, among others, the manufacturer and distributor of the EIFS.
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