Commercial Painting Company, Inc. v. The Weitz Company, LLC, et al.

The economic loss doctrine generally precludes a contracting party who suffers only
economic losses from recovering damages in tort. In Tennessee, the application of this
doctrine is limited to products liability cases. In this appeal, we consider whether the
economic loss doctrine should be expanded to apply outside the products liability context.
A jury awarded compensatory and punitive damages to a drywall subcontractor in a suit
against a general contractor under theories of breach of contract and tort. The Court of
Appeals applied the economic loss doctrine to preclude the recovery of damages in tort in
a suit between sophisticated commercial entities. The intermediate court, in part, affirmed
the award of compensatory damages for breach of contract, dismissed the tort claim, and
reversed the award for punitive damages. We hold the economic loss doctrine only applies
in products liability cases and should not be extended to other claims.