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Re: Economic loss and EOR liability

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Christopher Wright wrote:  "A suit for financial losses due to non compliance 
with the code may be maintained against the EOR."

    Not necessarily. Economic loss in California cannot be claimed unless 
they have caused damage to other property or personal injury.
    This theory began with a case called "Seely"; a more recent case ( summer 
1998) called Aas  v  Lyon held that a claim that "inadequate shear walls were 
built, by itself, does not support a right to a claim for damages, unless 
this defect caused other property damage or personal injury."  The same case 
held that "stigma" damages cannot be maintained in Calif. ( ie a building is 
known to be with some defect, as here, lack of adequate shear walls).  
    This was the holding by the Calif. Court of Appeal.  The Cal Sup Court is 
expected to rule on this issue any time now. Will keep you posted.
    
George Hakim