The Supreme Court of California Reaffirms the Economic Loss Doctrine, Declines to Impose Tort Liability on Developers and Contractors for Negligence in the Absence of Property Damage or Personal Injury

In December 2000, the Supreme Court of California issued its long-awaited ruling in Aas v. Superior Court, regarding the extent to which developers, contractors and subcontractors can be held liable for tort damages for negligent home construction resulting in building code violations, where such defects had not caused personal injury or property damage. Because the case offered the Court the opportunity, which it ultimately did not take, to curtail sharply the state’s economic loss doctrine, the case had been watched closely by both the building industry and homeowners’ associations.

For the full story, please view the PDF.