ExxonMobil Oil Corporation v. Amex Construction Co. Inc. (ILND Doc. No. 07 C 4278)
Here's an interesting case about a pipeline that de-coupled after a weld failed. The pipe's owner, had a continuing services agreement with the defendant regarding the installation of the pipe. The agreement included warranties, representations and guaranties about the quality, workmanship and fitness for a particular purpose for the work done in connection with the pipe. The pipe de-coupled roughly two months after its installation was completed.
Plaintiff brought a suit against defendant under breach of warranty and negligence claims. The court, in the opinion, denies the defendant's motion to dismiss both claims notably holding that the complaint contains enough information to state a cause of action for both the "sudden and dangerous event" and "damage to other property" exceptions to the economic loss doctrine. Finding that the pleadings were sufficient to state the claims, the court noted that discovery was needed to determine if the event would hold up to the standards for the exceptions, but that in pleading, the Plaintiff's papers were sufficient.
