What is the economic loss doctrine?

The economic loss doctrine is a fundamental legal rule in the state of Washington that relates to products liability law. The economic loss doctrine serves to limit the amount of damages that a plaintiff can seek and recover in a products liability lawsuit. Simply put, the economic loss doctrine states that a party cannot seek damages related to tangible economic losses resulting from a defective product unless the product actually caused physical injury or property damage beyond just the cost of the product itself. For example, if a consumer purchases a defective car and the car fails to perform as expected, the consumer can only seek damages related to the cost of the car and other direct economic losses related to the car. Under the economic loss doctrine, the consumer would be prevented from seeking damages for their personal disappointment or frustration, business losses from lost profits, or even any kind of emotional distress resulting from the defective car. The economic loss doctrine is significant because it serves to protect manufacturers from the risk of huge liability for intangible losses stemming from their products. The doctrine is codified in the Washington statutes, and provides a balanced approach to addressing product liability issues.

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What is the economic loss doctrine?

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