Today the Tennessee Supreme Court issued its opinion in Lincoln Gen. Ins. Co. v. Detroit Diesel Corp., No. M2008-01427-SC-R23-CV (Tenn. Aug. 21, 2009). The Court answered a certified question of law that it accepted from the United States District Court for the Middle District of Tennessee, to wit: Does Tennessee law recognize an exception to the economic loss doctrine under which recovery in tort is possible for damage to the defective product itself when the defect renders the product unreasonably dangerous and causes the damage by means of a sudden, calamitous event? The Court answered it in the negative.
Here's a link to the opinion:
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