Minnesota Session Laws - 1998, 1st Special Session

                              CHAPTER 2-S.F.No. 1 
                  An act relating to civil actions; clarifying the 
                  effect of the economic loss statute on actions based 
                  upon fraud or intentional misrepresentation; amending 
                  Minnesota Statutes 1996, section 604.10. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 604.10, is 
        amended to read: 
           604.10 [ECONOMIC LOSS ARISING FROM THE SALE OF GOODS.] 
           (a) Economic loss that arises from a sale of goods that is 
        due to damage to tangible property other than the goods sold may 
        be recovered in tort as well as in contract, but economic loss 
        that arises from a sale of goods between parties who are each 
        merchants in goods of the kind is not recoverable in tort. 
           (b) Economic loss that arises from a sale of goods, between 
        merchants, that is not due to damage to tangible property other 
        than the goods sold may not be recovered in tort. 
           (c) The economic loss recoverable in tort under this 
        section does not include economic loss due to damage to the 
        goods themselves. 
           (d) The economic loss recoverable in tort under this 
        section does not include economic loss incurred by a 
        manufacturer of goods arising from damage to the manufactured 
        goods and caused by a component of the goods. 
           (e) This section shall not be interpreted to bar tort 
        causes of action based upon fraud or fraudulent or intentional 
        misrepresentation or limit remedies for those actions. 
           Sec. 2.  [LEGISLATIVE INTENT.] 
           The amendment in section 1 is intended to clarify, rather 
        than to change, the original intent of Minnesota Statutes, 
        section 604.10. 
           Sec. 3.  [REVISOR'S INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes, 
        the revisor shall insert an annotation to Minnesota Statutes, 
        section 336.2-721, alerting the reader to Minnesota Statutes, 
        section 604.10, and the interrelationship of the two sections. 
           Sec. 4.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment and 
        applies to actions pending on or commenced on or after that date.
           Presented to the governor April 22, 1998 
           Signed by the governor April 22, 1998, 9:59 p.m.