In Newspin Sports, LLC v. Arrow Electronics, Inc., 2018 WL 6295272, the Seventh Circuit affirmed the dismissal of plaintiff’s negligent misrepresentation claims but upheld its fraud claims. Under New York law (the contract had a NY choice-of-law provision), a plaintiff alleging negligent misrepresentation must establish (1) a special, privity-like relationship that imposes a duty on …
Tag Archives: economic loss rule
Law Firm’s Negligence Suit Against Bank Defeated By Account Agreement and UCC Article 4 (IL Law))
In July 2013, the Third District appeals court affirmed dismissal of a law firm’s (Firm) negligence suit against a bank that charged back the firm’s account after a $350,000 check deposited by the Firm turned out to be counterfeit. Rejecting the Firm’s negligence claim, the Court found that the terms of the parties’ account agreement and the specific …
The Negligent Misrepresentation Exception to Economic Loss Rule: The Information v. Tangible Product Dichotomy
The economic loss rule bars recovery in tort where the claim is essentially one for breach of contract. Lincoln Park West Condominium Association v. Mann, Gin, Ebel & Frazier, 136 Ill.2d 302, 307 (1990)(economic loss rule generally). “Economic loss” means (i) damages for inadequate value, (ii) costs of repair and replacement of the defective product, …