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Tenant had a problem. The developer had hired a contractor to buildout the tenant's space, and the contractor botched the job, damaging the tenant's computer equipment. The tenant sued the developer for the damages to the computers under Section 553.84, Florida Statutes, which allows persons to sue for violations of the building code. The developer claimed that its sole obligation was set forth in the lease, which required the developer only to conduct the buildout…it didn't say that the buildout had to be done well. The appellate court agreed with the developer, holding that the economic loss doctrine barred the tenant's statutory claim for violation of the building code, when the parties' agreement covered their respective obligations. The Supreme Court of Florida overruled the appellate court. The supreme court's opinion stated forcefully that a technical legal defense should not trump the Florida legislature's pronouncements on an issue. Bottom line: if the legislature says there's a claim, there's a claim. The economic loss rule was primarily intended for use in the product liability arena. It has been extended into many other areas of commerce over the last ten years by creative defense lawyers, and receptive courts. In 1999, he Florida Supreme Court reigned the application of the economic loss rule back. Moral: Make room on the shelf for more law review articles. Comptech International, Inc. v. Milam Commerce Park, Ltd., 1999 WL 983857 (Fla. 1999) (opinion subject to revision). |
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