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

The “economic loss” rule in defective products law in Florida is a rule of tort law which states that a person who is injured by a product cannot make a claim for damages from the manufacturer for economic losses, such as the cost of replacing the product or the cost of repairs, if the injury was not caused by a defect in the product. The rule applies to both personal injury and property damage cases. In the case of personal injury, the rule states that the injured person cannot receive damages from the manufacturer for medical costs, lost wages, or other economic losses that result from the injuries. For property damage cases, the economic loss rule states that a person cannot seek damages from the manufacturer for the cost of replacing or repairing the damaged product, unless the product was damaged due to a defect in the product. The purpose of the economic loss rule is to prevent injury victims from double-dipping. Double-dipping is when an injured person attempts to seek both compensatory and punitive damages from the same claim, which can result in the person receiving more compensation than is reasonable. The economic loss rule also serves to protect manufacturers from having to pay for damages if the product did not have a defect.

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

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