Treetop at Stratton Condo. Ass'n v. Treetop Dev. Co. (2011)

Citation: Treetop at Stratton Condo. Ass'n v. Treetop Dev. Co. (2011)
Parent Document: Treetop at Stratton Condo. Ass'n v. Treetop Dev. Co. (2011)
Jurisdiction: Vermont (state)
Effective Date: 2011-02-04
Original Source: https://www.courtlistener.com/opinion/4489923/treetop-at-stratton-condo-assn-... ↗

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Stoltz Aff. ¶¶ 8-12. Fundamentally, the Association alleges that deficiencies as to one or more
components of the product its members purchased have resulted in damage to other parts of the
product. Yet this type of injury, as courts routinely hold, falls within the economic loss rule. See
East River Steamship Corp. v. Transamerica Delaval, Inc. 476 U.S. 858 (1986) (economic loss
rule prohibits tort recovery when a product damages itself, causing economic loss, but does not
cause personal injury or damage to any property other than itself). Stated another way, the repair
and reconstruction of the curbs and sidewalks and other portions of the project are economic
losses that arose from the Association's complaint that it did not receive the benefit of its bargain.
See Indianapolis-Marion County, 929 N.E.2d at 732 (citing to a number of states that have
similarly interpreted the economic loss rule in the construction/design defect context as
prohibiting tort claims for losses arising where plaintiff is seeking the benefit of its bargain).
Therefore, the Court must hold that the damages claimed by the Association are “economic
losses” not generally recoverable in tort, aside from any damages claimed to personal property
that Defendant DEW has conceded does not constitute economic loss. 5
   c. Privity of Contract

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