Legal Memorandum: Economic Loss Doctrine in WI

Issue: Do Wisconsin courts recognize the economic loss doctrine?

Area of Law: Business Organizations & Contracts
Keywords: Economic loss doctrine; Tort recovery; Economic or commercial losses
Jurisdiction: Wisconsin
Cited Cases: None
Cited Statutes: None
Date: 03/01/2015

The economic loss doctrine is a judicially created rule that ‘”preclud[es] contracting parties from pursuing tort recovery for purely economic or commercial losses associated with the contract relationship.'”  Kaloti Enters., Inc. v. Kellogg Sales Co., 2005 WI 111, ¶ 27 (citation omitted).  The rule is intended to preserve the distinction between contract and tort by requiring transacting parties to pursue only their contractual remedies when asserting an economic loss claim.  Id., ¶ 28.  Further, it ‘”encourage[s] the party best situated to assess the risk [of] economic loss, the commercial purchaser, to assume, allocate, or insure against that risk.'”  Id.


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