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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Recently, in a case heard by the Utah Supreme Court with similar facts to the instant
matter, a homeowner’s association brought tort claims against a developer and builder.
Davencourt at Pilgrim’s Landing Homeowners Ass’n. v. Davencourt , 221 P.3d 234 (Utah 2009).
The court applied the economic loss rule even though the association had no contract or
opportunity to negotiate with the developer or builder. Id. at 243. The court reasoned that
permitting tort causes of actions would frustrate the defendants’ economic expectations. Further,
the court held that to require privity of contract as a prerequisite to application of the economic
loss rule would erode the basis for the existence of the rule – to preserve the distinction between
tort and contract law - by recognizing a tort cause of action regardless of any existing contracts
between various parties in a construction project explicitly allocating respective duties and
exposures to risk. Id. at 243.

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