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Tort Recovery for Defective Products Posing a Threat of Bodily Harm: An Exception to the Economic Loss Rule?
Author: Matthew W. Gissendanner
Published: 57 S.C. L. Rev. 619 (2006)
In Colleton Preparatory Academy, Inc. v. Hoover Universal, Inc., the United States District Court for the District of South Carolina, sitting in diversity, certified to the South Carolina Supreme Court the question of whether a plaintiff may maintain a negligence action for economic loss when injury to only the product itself is accompanied by a threat of economic harm. This Comment disagrees with
Colleton and argues that South Carolina case law indicates problems with the economic loss rule generally and suggests the state courts’ willingness to carve out exceptions to the rule. These cases, considered along with case law from other jurisdictions and with relevant policy considerations, indicate that the South Carolina Supreme Court would likely hold that the economic loss rule does not bar recovery for injury only to the product itself if the defect involves a threat of bodily injury.
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