The Economic Loss Rule and Its Application to the Tort of Negligent Misrepresentation in Texas

Authors

Charles E. Fowler Jr.

Publication Date

7-1-2012

Document Type

Article

Abstract

Part II of this Article begins by chronicling the origin of the economic loss rule; the present-day economic loss rule can be viewed as deriving from two fairly distinct areas. Part II then focus on the adoption of the economic loss rule in Texas and examines the contours of the doctrine under modern Texas law. Part III describes the cause of action for negligent misrepresentation as recognized in Texas, then surveys cases which purport to apply the economic loss rule to negligent misrepresentation claims. Part IV suggests a clarification of the law: negligent misrepresentation should be viewed as outside the reach of the economic loss rule. Though the policies behind the economic loss rule are worthy pursuits, the cause of action for negligent misrepresentation is narrowly drawn so as to inherently satisfy the concerns behind the economic loss rule. As this Article explains, the historical divide between general negligence, with its roots in the form of action of trespass on the case, and misrepresentation, its roots in the action of deceit, provides a useful means of accomplishing this limitation on the scope of the economic loss rule. Part V concludes.

DOI

10.37419/TWLR.V18.I4.9

First Page

893

Last Page

922

Recommended Citation

Charles E. Fowler Jr., The Economic Loss Rule and Its Application to the Tort of Negligent Misrepresentation in Texas, 18 Tex. Wesleyan L. Rev. 893 (2012).
Available at: https://doi.org/10.37419/TWLR.V18.I4.9