In a ruling that significantly expands the scope of the economic loss doctrine, a federal appeals court has ruled that a consumer class action that accuses a car manufacturer of knowingly selling thousands of defective vehicles cannot include tort claims for fraud and unfair trade practices.
In Werwinski v. Ford Motor Co., the 3rd U.S. Circuit Court of Appeals rejected the argument that the economic loss doctrine should be limited to transactions between commercial enterprises. Instead, the unanimous three-judge panel held that the doctrine extends to transactions between manufacturers and individual consumers as well.
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