Economic Loss Doctrine

The Economic Loss Doctrine limits legal claims to the recovery of tangible damages resulting from faulty products or services. Specifically, it prevents individuals from suing for purely financial losses—like lost profits or business setbacks—that aren't tied to personal injury or property damage. For example, if a defective product causes a company's stock value to drop, the doctrine might prevent a lawsuit based only on that financial loss, unless there's also physical damage or injury involved. The main goal is to distinguish between claims for physical harm and those for economic inconvenience or loss.