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

The “economic loss” rule in defective products law is an educational concept developed to help determine when a person, or “claimant,” is able to file a claim against a product manufacturer for any harm or damage caused by a defective product. Under Washington state law, a claimant may bring a lawsuit for economic loss caused by a defective product, but only if the product did not cause any physical harm or property damage. The economic loss rule is important in the realm of defective products law because it helps to protect manufacturers from being liable for needless or excessive claims that were simply caused by the malfunction or breakdown of a product. In the eyes of Washington state law, manufacturers are only responsible for claims that were caused by a defect in their product that physically harmed a person or damaged property - not simply because the product broke down or did not perform as expected. In Washington, claimants seeking damages for economic loss must prove the defect in the product was the direct cause of their economic injury, and that the economic damages were foreseeable for the manufacturer. If the claimant is able to prove these points, they may be able to successfully recover compensation for any damages they have suffered as the result of a defective product.

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

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