East River Steamship Corporation v. Transamerica Delaval Inc. (1985)
- Docket
- 84-1726
- Decided
- 1985-01-01
Summary
Question: When a product fails as a result of design and manufacturing flaws, damaging only itself and causing only economic harm, can the owner of the product bring suit against the manufacturer under the negligence or products-liability doctrines of tort law? Conclusion: No. A unanimous Supreme Court ruled that when a defective product injures only itself and causes only economic harm, tort law claims do not apply. Justice Harry A. Blackmun, writing for the Court, stated "a manufacturer in a commercial relationship has no duty under either a negligence or strict products-liability theory to prevent a product from injuring itself." The suit, therefore, could only be brought under warranty claims, which could no longer be filed because of a time limit in the contract.