Plaintiff’s newly purchased boat required major engine repairs.
While undergoing those repairs, the boat sank overnight while it
was docked at a marina. The plaintiff sued several parties for
the loss, including its yacht broker.
McAlpin Conroy represented the yacht broker, and moved to
dismiss the plaintiff’s negligence claim under the economic loss
rule. Under this rule, a plaintiff may not sue a defendant in
tort where there is a contract governing their relationship and
the damage is limited to the product itself.
Court agreed with this legal analysis and held that because the
plaintiff’s damages were limited to loss of the yacht itself,
the economic loss rule precluded any tort-based claims against
McAlpin Conroy’s client. The negligence claim was therefore
dismissed with prejudice.