N.J. Supreme Court Affirms Economic Loss Rule in EIFS Siding Case

TRENTON, N.J. - The New Jersey Supreme Court has reversed a lower court and held that the economic loss rule prevents second-generation homeowners from suing the manufacturer of faux stucco siding for replacement of the siding itself, but not for damage to other parts of plaintiffs' home. Dean v. Barrett Homes Inc., et al., No. A-15 Sept. Term 2009 (N.J. Sup. Ct.).

The high court held in its Nov. 15 opinion that the rule limiting homeowners' recovery under the state's Products Liability Act applies to homeowners who were not the original purchasers, as well as to direct purchasers of products …