Nevada Bars Negligence Claims against Design Professionals for Economic Loss

摘要

The Nevada Supreme Court has spoken definitively with the Ter-racon case, holding that the economic loss doctrine bars tort claims against design professionals for purely economic losses on commercial development and improvement projects. But while the Court addressed pure economic loss in the tort context, it did not discuss the recoverability of economic losses when there is also personal injury or property damage. Also noteworthy in the case is the fact that Terracon had a contract with the owner. As repeatedly stated by the Court, contract law is better suited than tort law for compensating an injured party for economic loss. Thus it would appear that Mandalay could still pursue claims against Terracon, subject to the terms of the parties' contract. This case once again shows the importance of careful and considered contract drafting in setting out the expectations of the parties.