Also known as: accident
Written by attorneys · grounded in primary & secondary sources — see below
An event marked by abrupt onset and substantial hazard that produces personal injury or property damage. Such an occurrence supplies the basis for an exception to the economic loss rule, allowing recovery of economic losses in tort even when the only harm is to the product itself.
Sasha Stone buys a new home entertainment system from Sterling Manufacturing. Weeks later a wiring defect ignites a sudden fire that destroys the system and damages her living room furniture. Because the fire qualifies as a sudden or dangerous occurrence, Sasha may recover the economic loss of the system itself in tort despite the economic loss rule.
Scott Summers purchases a laptop from Sapphire Technologies. The battery suddenly explodes during normal use, causing burns and destroying the computer. The explosion meets the sudden or dangerous occurrence standard, so Scott can pursue tort recovery for the value of the laptop even though the only physical harm is to the product.
Seth Shapiro leases a delivery van from Silverline Industries. Defective brakes fail without warning, sending the van into a ditch and totaling the vehicle. The abrupt brake failure constitutes a sudden or dangerous occurrence, permitting Seth to recover the economic loss of the van in tort notwithstanding the economic loss rule.
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Spencer Silver buys a pressure cooker from Sierra Solutions. The lid suddenly blows off during ordinary cooking, spraying hot contents and ruining the appliance. The violent rupture satisfies the sudden or dangerous occurrence test, allowing Spencer to recover the cost of the cooker in tort despite the economic loss rule.
Samuel Soto rides an elevator maintained by Sterling Manufacturing. The cable snaps without prior warning, causing the car to drop several floors and damaging the elevator mechanism. The sudden cable failure qualifies as a sudden or dangerous occurrence, so Samuel may recover the economic value of the elevator repair in tort.
Sarah Sullivan uses a propane grill purchased from Sapphire Technologies. The tank suddenly ruptures during normal operation, destroying the grill and scorching her deck. Because the rupture is a sudden or dangerous occurrence, Sarah can recover the economic loss of the grill in tort even though the product itself was damaged.
The plaintiff must demonstrate that the harm resulted from an event with abrupt onset and substantial hazard that caused personal injury or property damage. Courts then permit recovery of economic losses in tort even when the only harm is to the defective product itself.
Supporting sources
No. The exception requires an abrupt event. Slow corrosion or repeated minor leaks over time do not satisfy the suddenness element and therefore do not trigger the exception to the economic loss rule.
Supporting sources
Yes. Property damage from the fire satisfies the exception. The sudden or dangerous occurrence rule focuses on the nature of the event rather than whether personal injury occurred.
Supporting sources
…v. New York , 198 U. S. 45, 76 (1905): "[The Constitution] is made for people of fundamentally differing views, and the accident of our finding certain opinions natural and familiar or novel and even shocking ought not to conclude our judgment upon the question whether statutes embodying them conflict with the…