Statutory Interpretation – Economic Loss Doctrine

By: Derek Hawkins//May 27, 2020//

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WI Court of Appeals – District II

Case Name: Mechanical, Inc., v. Venture Electrical Contractors, Inc.,

Case No.: 2018AP2380

Officials: Neubauer, C.J., Reilly, P.J., and Gundrum, J.

Focus: Statutory Interpretation – Economic Loss Doctrine

At issue in this construction dispute is whether the economic loss doctrine bars a negligence claim seeking purely economic losses—delay damages—by one subcontractor against another with whom there was no contract. Each subcontractor did enter a subcontract with the general contractor that addressed their individual obligations, duties of care, schedules of work, changes, and remedies for delays. Because the complaining subcontractor’s negligence claim is rooted in the duties imposed by the interrelated construction contracts, contract law provides the remedies for the economic loss at issue, foreclosing tort remedies. The economic loss doctrine bars the negligence claim. We affirm.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.

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