535 Madison Ave. Gourmet Foods, Inc. v. Finlandia Ctr. Inc. case brief

535 Madison Ave. Gourmet Foods, Inc. v. Finlandia Ctr. Inc. (2001) Pg. 544
750 N.E.2d 1097 (N.Y. 2001)

FACTS

-A wall collapsed partially from a 39 floor office tower in Manhattan.
-All the bricks/mortar fell on Madison Ave. causing the closure of 15 blocks for 2 weeks.  Some businesses closed for 5 weeks.
-Collapse caused by construction project, drilling of 49 holes for windows in building.  This aggravated the existing structural defects.

-P suing for economic losses (not being able to stay open as well as losing business)

PROCEDURAL HISTORY

-Dimisssed P claims in negligence.

ISSUE

Can a P recover purely for economic loss without suffering personal injury or property damage?

HOLDING

No, the court stated that eco. loss alone w/o personal injury or property damage does not entitle a P to 

relief.

RULES

A P can not recover for economic loss alone if there is no existence of personal injury or property 

damage accompanying the claim.

ANALYSIS

-It would open a "Pandora's box" of litigation which could possibly extend to unlimited liability.

Class: Tort Law

Subject: Negligence, Damages, Liability