Indiana Federal Court Bars City’s Negligence Claim Against Subcontractor, Allows Breach of Contract Claim Despite Lack of Privity
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An Indiana federal court applied the Indiana economic loss rule to bar the city of Whiting from recovering most of the negligence damages it claimed against a marine engineering subcontractor that allegedly performed defective design work in connection with a lakefront park project. However, the decision then allowed the city to pursue its breach of contract damages directly against the subcontractor despite lack of privity as a third-party beneficiary.
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