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Washington Law Review

Economic loss rule

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Clarifying Washington's Approach To The Independent Duty Doctrine, Margaret Wykowski Jun 2020

Clarifying Washington's Approach To The Independent Duty Doctrine, Margaret Wykowski

Washington Law Review

When faced with limited or no recovery under contract law, resourceful lawyers often turn to tort law. The economic loss rule restricts this practice by barring recovery in tort for solely economic losses. However, what qualifies as “economic loss” is not always clear. In 2010, the Washington State Supreme Court announced it was clarifying the economic loss rule by adopting the independent duty doctrine. Rather than analyze the type of loss suffered, the independent duty doctrine determines whether a party owed a tort duty independent of the relevant contract, closely mirroring a traditional tort inquiry. When establishing the independent duty …