Day on Torts

Tort claim barred by economic loss doctrine.

Where plaintiff brought a tort action against defendant based on defective products made pursuant to a contract between the parties, dismissal based on the economic loss doctrine was affirmed.

In Vidafuel, Inc. v. Kerry, Inc., No. M2024-00041-COA-R3-CV (Tenn. Ct. App. Nov. 4, 2024), the plaintiff developed and distributed wellness protein drinks. The plaintiff contracted with the defendant to manufacture these drinks, and problems began early in the relationship. Samples provided were not adequate, shipments that went out received customer complaints and had to be pulled, and the defendant failed to ever create a product that met the plaintiff’s quality requirements.

Plaintiff filed this suit asserting claims for negligent or intentional misrepresentation, deceit/fraudulent inducement, and violations of the Tennessee Consumer Protection Act (“TCPA”). The plaintiff argued that the claims were not based on the contract but were instead based on the defendant’s representations about its ability to manufacture the product. The defendant filed a motion to dismiss, arguing that the economic loss doctrine barred the plaintiff’s tort claims and that the TCPA claim was time-barred. The trial court agreed, dismissing the claims, and the Court of Appeals affirmed.

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