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KB Home Ind., Inc. v. Rockville TBD Corp.

Citation: 40 ELR 20171
No. No. 49A02-0909-cv-881, (Ind. Ct. App., 06/18/2010)

An Indiana appellate court held that the economic loss doctrine does not preclude a property owner from pursuing negligence claims against a company that previously operated a manufacturing site on adjacent property. If a plaintiff is not seeking damages involving the benefit of the bargain or other matters governed by contract and/or related principles, the economic loss doctrine does not bar a negligence action. In this case, it is undisputed that the property owner did not contract with the company to purchase property or a product. The owner did not assert any product liability or comparable claim, and there is no showing that it is seeking to circumvent any contractual, statutory, or other limits on the nature or scope of its permissible recovery against the company. Accordingly, the economic loss doctrine does not apply and the court reversed the lower court's grant of summary judgment for the company on the owner's negligence claim against it. The lower court, however, properly granted summary judgment in favor of the company on the owner's trespass and nuisance claims. The case, therefore, was reversed in part, affirmed in part, and remanded.