Pennsylvania Supreme Court Upholds Economic Loss Doctrine

In an Opinion issued on December 29, 2009, in the case of Excavation Technologies, Inc. v. Columbia Gas Co. of Penna., 2009 WL 5103605 (Pa. 2009), the Pennsylvania Supreme Court upheld the economic loss doctrine. The doctrine generally forbids, with limited exceptions, any negligence actions for purely economic damages, i.e. not involving any personal injury or property damages.

In this case a gas line was negligently damaged during a construction project, resulting only in monetary damages to the plaintiff. The Court upheld the defendant's reliance upon the doctrine and affirmed the lower courts' dismissals of the claim.

The Court's majority opinion can also be viewed by clicking on this link: http://www.aopc.org/OpPosting/Supreme/out/J-123-2008mo.pdf.

Thanks sent to Attorney James Beck of the Philadelphia office of the Dechert, LLP law firm for bringing this case to my attention.