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THE GEORGIA ECONOMIC LOSS RULE

ABSTRACT

The Georgia Economic Loss Rule is a common law rule that inhibits claimants from seeking tort damages for losses in disputes about the functionality of products that are traditionally remedied in contract actions. The rule arises out of a desire by the courts to maintain separation between damages for breach of contract and the more expansive damages recoverable in tort. The rule provides that absent injury to person or property, other than to a malfunctioning product itself, where the loss is a pecuniary one like loss of the value or use of the product itself or the cost of repairing it, the claimant may not sue the provider for negligence. Application of the rule limits the ...

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