Indiana Economic Loss Doctrine
The Indiana Economic Loss Doctrine prohibits two parties with a contractual relationship from bringing a tort action against each other for economic losses. Though the doctrine can have a negative impact on your claim, we’ll review potential avenues to recovery.
Economic Loss Rule
The Economic Loss Doctrine can have a negative impact on your claim and make it more difficult to recover. The Economic Loss Doctrine in Indiana bars a plaintiff from recovering under a theory of negligence when a defective product or service causes property damage to the product or service itself. Unlike some other states, Indiana does not allow for recovery of damage to the product itself, even when there is personal injury or damage to “other property” associated with the claim.
However, there are avenues to recovery even if tort claims are barred. For example, if there is damage to “other property,” a plaintiff could recover under a theory of negligence for the damage to the “other property” only. Also, plaintiffs can still pursue causes of action based in contract, such as breach of contract or breach of warranty when the Economic Loss Doctrine would bar a tort claim. A careful review of your claim by an experienced subrogation attorney can help determine what causes of action are available and evaluate your claim. Consult with one of our subrogation lawyers early in your claim to maximize your chances of recovery.