MOORMAN MANUFACTURING CO. V. NATIONAL TANK CO. 435 N.E.2d 443 (1982) CASE BRIEF

MOORMAN MANUFACTURING CO. V. NATIONAL TANK CO.

435 N.E.2d 443 (1982)

NATURE OF THE CASE: National (D) appealed a judgment reversing the dismissal of counts I through III, and holding that Moorman (P), manufacturer, could recover for economic loss under strict liability, misrepresentation, and negligence theories.

FACTS: P purchased a steel grain tank from D for use in a feed processing plant. Ten years later, a crack was discovered in the tank on one of the steel plates. P sued under strict tort liability, misrepresentation, negligent design and express warranty. A circuit court held that P could not recover from D under the theories of (1) strict liability in tort, (2) misrepresentation and (3) negligence for purely economic losses resulting from an alleged crack in a grain-storage tank. The circuit court dismissed counts I, II and III of plaintiff's complaint (based upon the above tort theories) but found that count IV, based upon breach of express warranty, was not barred by the statute of limitations. The appellate court held that P could recover for economic loss under the tort theories of strict liability, misrepresentation and negligence. The court also found that plaintiff's tort actions were not barred by the statute of limitations and that the storage tank was a product. It reversed the trial court's dismissal of counts I, II and III. D appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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