What is the “economic loss” rule in defective products law?

The “economic loss” rule in defective products law is a rule that limits recovery for damages related to a product. In Indiana, it states that a product purchaser cannot recover all economic losses related to a defective product from the manufacturer, seller, or distributor. If the purchaser has been harmed in some other way, such as personally or through damage to other property, they may be able to recover those damages, but not the economic losses related directly to the defective product. For example, say that a purchaser bought a car, and the car turned out to be defective. The purchaser would not be able to recover the economic losses associated with the purchase, such as diminished car value, repair costs, and costs associated with any delays in receiving the car. However, they may be able to recover damages related to injuries or other property damage caused by the defective car, such as medical expenses and damage to another vehicle. The economic loss rule is applicable to most defective products cases in Indiana. It is important to note, however, that this rule may not apply in all cases. For instance, the rule does not apply to certain types of commercial transactions, such as those involving a contract between a manufacturer and a consumer or between two commercial entities. Additionally, Indiana courts can choose to apply the economic loss rule in specific cases depending on the specific circumstances of the case.

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What is the “economic loss” rule in defective products law?

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