A company’s decision to settle its property damage claims with a defendant in a multi-party motor vehicle case does not mean the economic loss doctrine will bar the company from later pursuing a loss of contract claim, the state Superior Court has ruled.
A unanimous three-judge panel of the court, ruling in Donaldson v. Davidson Brothers, held that the Centre County Court of Common Pleas inappropriately applied the economic loss doctrine to dismiss one defendant’s counterclaims against another defendant, after the two had entered into a settlement agreement. The economic loss doctrine bars negligence actions if there is no personal injury or property damage, but only economic loss claims.
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