Atlanta Bar Association Blog

Simple Negligence and Economic Losses Don't Mix in Georgia

Posted by: Stacey Carroll on Mar 20, 2014
Section News: Litigation

Every business litigator frequently confronts claims of economic losses, particularly lost profits. And every such claim is typically met with a standard arsenal of defenses: the profits alleged to have been lost are too speculative to be recovered, or the losses were caused by something other than the defendant's conduct. But there is one defense that, by its nature, can spell complete damnation for an economic loss recovery when it is premised on a claim of negligence-Georgia's economic loss rule. Although some form of the rule prevails in every state, Georgia courts have bestowed unusual austerity and breadth upon the doctrine, doing so in somewhat unpredictable fashion. This article briefly traces the evolution of the economic loss rule in Georgia, sets out the current state of the law, and concludes by addressing whether Georgia courts should reverse course and restrict the doctrine's application.

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