MDL Judge Says Economic Loss Rule Doesn't Apply to Drywall Claims

NEW ORLEANS - The federal Chinese drywall MDL judge has rejected claims by defendants that the Economic Loss Rule bars certain claims arising from allegedly defective drywall installed in homes throughout the Southeastern United States. In Re: Chinese Manufactured Drywall Products Liability Litigation, MDL No. 2047 (E.D. La.).

Judge Eldon E. Fallon of the U.S. District Court for the Eastern District of Louisiana issued his order and reasons Jan. 13, denying motions to dismiss tort claims for economic damages brought under Florida, Alabama, Mississippi and Louisiana law.

Judge Fallon held that the unique nature of Chinese drywall claims prevents application …