as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to civil actions; clarifying the economic 1.3 loss doctrine; providing for a comprehensive statute 1.4 governing economic loss; proposing coding for new law 1.5 in Minnesota Statutes, chapter 604; repealing 1.6 Minnesota Statutes 1998, section 604.10. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. [604.101] [ECONOMIC LOSS ARISING FROM THE SALE 1.9 OF GOODS.] 1.10 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 1.11 subdivision apply to this section. 1.12 (b) "Economic loss" means financial harm, limited to damage 1.13 to or loss of the goods sold; damage to tangible property other 1.14 than the goods sold; damage to intangible property; damage to 1.15 property into which the goods are incorporated and become a 1.16 component part; or damage to real property. Economic loss does 1.17 not include personal injury. 1.18 (c) "Fraud in the inducement" means an intentional 1.19 misrepresentation that induces the buyer to enter into the 1.20 contract, but does not include negligent or reckless 1.21 misrepresentations. 1.22 (d) "Merchant" means a person who is a merchant within the 1.23 meaning of section 336.2-104. 1.24 (e) "Tort" means common law torts, but does not include 1.25 independent statutory causes of action. 1.26 Subd. 2. [ECONOMIC LOSS.] (a) In transactions governed by 2.1 article 2 of the Uniform Commercial Code where the buyer is a 2.2 merchant, economic loss may be recovered in tort only if the 2.3 claim is one for fraud in the inducement. 2.4 (b) In transactions governed by article 2 of the Uniform 2.5 Commercial Code where the buyer is not a merchant, economic loss 2.6 may be recovered in tort, except that damage to or loss of the 2.7 goods sold or damage to intangible property may be recovered in 2.8 tort only if the claim is one for fraud in the inducement. 2.9 Subd. 3. [EFFECT.] This section supersedes the common law 2.10 economic loss doctrine. 2.11 Sec. 2. [REPEALER.] 2.12 Minnesota Statutes 1998, section 604.10, is repealed. 2.13 Sec. 3. [EFFECTIVE DATE.] 2.14 This act is effective the day following final enactment and 2.15 applies to contracts or agreements entered into on or after that 2.16 date.