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The economic loss rule does not prevent a California home builder from recovering purely economic losses from a product manufacturer under an equitable indemnity theory

  • Alston & Bird LLP
  • -
  • USA
  • -
  • March 26 2009

In Greystone Homes, Inc. v. Midtec, Inc., Greystone Homes, a home builder, sued a product manufacturer, Midtec, Inc., for negligence and indemnity and contribution after failures with Midtec’s fittings caused leaks in the plumbing systems of homes built by Greystone

Subcontractors and their liability insurers are entitled to recoup contractual payments from third-party tort-feasors if traditional requirements of subrogation are satisfied

  • Alston & Bird LLP
  • -
  • USA
  • -
  • August 1 2008

In Frymire Engineering Company, Inc. v. Jomar International, Ltd., a subcontractor and its liability insurer brought an action against the manufacturers of an allegedly faulty valve the subcontractor had installed in a hotel in order to recover payments made to the hotel owner for water damage incurred as a result of the valve