The Economic Loss Rule in a “Crescent University” Landscape: What Subcontractors and Subsequent Purchasers Should Know

Jacob Wellman
Construction Litigation, Litigation and Risk Management Services

In North Carolina, lawsuits by homeowners against contractors and subcontractors are governed by the economic loss rule. This rule, articulated in the seminal case Ports Auth. v Lloyd A. Fry Roofing Co., states that a plaintiff cannot sue in tort when a contractual remedy exists, with a few exceptions: unless a third-party sustained the injury,…