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Schiavone Construction Company v. Elgood Mayo Corp.

Court of Appeals of the State of New York
May 4, 1982
436 N.E.2d 1322 (N.Y. 1982)

Summary

holding that under the economic loss rule, if an alleged product malfunction is alleged to have caused purely economic loss, then the end-purchaser is limited to contract claims against the manufacturer and may not seek damages in tort

Summary of this case from EED Holdings v. Palmer Johnson Acquisition Corp.

Opinion

Argued March 23, 1982

Decided May 4, 1982

Appeal from the Appellate Division of the Supreme Court in the First Judicial Department, BENTLEY KASSAL, J.

Raymond S. Jackson, Jr., and Peter D. Raymond for appellant.

Eugene Schaffel for respondents.



Order reversed, with costs, and plaintiffs' motion denied for the reasons stated in the dissenting opinion of Justice SAMUEL J. SILVERMAN at the Appellate Division ( 81 A.D.2d 221, 227-234). Question certified answered in the negative.

Concur: Chief Judge COOKE and Judges JASEN, GABRIELLI, JONES, WACHTLER, FUCHSBERG and MEYER.


Summaries of

Schiavone Construction Company v. Elgood Mayo Corp.

Court of Appeals of the State of New York
May 4, 1982
436 N.E.2d 1322 (N.Y. 1982)

holding that under the economic loss rule, if an alleged product malfunction is alleged to have caused purely economic loss, then the end-purchaser is limited to contract claims against the manufacturer and may not seek damages in tort

Summary of this case from EED Holdings v. Palmer Johnson Acquisition Corp.

adopting dissenting opinion of Silverman, J.

Summary of this case from Morse/Diesel, Inc. v. Trinity Industries, Inc.

adopting the reasoning of the dissenting opinion below

Summary of this case from Plum House Iv, Inc. v. Wells Fargo Merch. Servs., LLC

adopting economic loss doctrine

Summary of this case from In re Facebook, Inc.

adopting Judge Silverman's dissenting opinion

Summary of this case from Columbus McKinnon v. China Semiconductor

denying cause of action for reasons stated in dissenting opinion below

Summary of this case from 2314 Lincoln Pk. West Condo. v. Mann

reversing lower court decision

Summary of this case from Hildebrand v. MI Windows & Doors, Inc.

reversing grant of leave to amend to add strict liability claim for pure economic injury

Summary of this case from EED Holdings v. Palmer Johnson Acquisition Corp.

embracing the views expressed in Justice Silverman's dissenting opinion

Summary of this case from County of Suffolk v. Long Island Lighting Co.

In Schiavone, the New York Court of Appeals reversed the Appellate Division and trial court and embraced the economic loss rule.

Summary of this case from First Care Medical Clinic, Inc. v. Polymedco, Inc.

In Schiavone, supra, the New York Court of Appeals reversed the Appellate Division's holding that a cause of action in strict liability could be asserted "for the reasons stated in the dissenting opinion of Justice Samuel J. Silverman," reported at 81 A.D.2d 221, 227-34, 439 N.Y.S.2d 933, 937-41 (1st Dep't 1981). It should be noted that Justice Silverman's opinion directly addressed only the question of liability for economic loss under a theory of strict products liability.

Summary of this case from Consol. Edison Co. v. Westinghouse Elec. Corp.

In Schiavone, the truck hoist could not withstand ordinary use in the plaintiff's business and eventually had to be sold at a loss.

Summary of this case from Bellevue South Associates v. HRH Construction Corp.

In Schiavone Constr. Co. v Mayo Corp. (56 N.Y.2d 667, revg 81 A.D.2d 221 on dissenting opn below), the Court of Appeals adopted limitations on tort recovery based on product failure.

Summary of this case from Hemming v. Certainteed Corporation
Case details for

Schiavone Construction Company v. Elgood Mayo Corp.

Case Details

Full title:SCHIAVONE CONSTRUCTION COMPANY et al., Respondents, v. ELGOOD MAYO CORP…

Court:Court of Appeals of the State of New York

Date published: May 4, 1982

Citations

436 N.E.2d 1322 (N.Y. 1982)
436 N.E.2d 1322
451 N.Y.S.2d 720

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