Jason A. Dunn


In Purcell Tire and Rubber Co. v. Executive Beechcraft, Inc., the Missouri Supreme Court held that the “express negligence” rule is inapplicable to liability limitations in contracts between sophisticated parties with claims or purely economic losses. Although the decision does not explicitly determine whether the case presented a contract or a tort claim, the result clearly follows from the treatment of the case as a pure contract action. Consequently, the decision parallels the typical result reached under the application of the more well-known “economic loss rule” and appropriately preserves the fundamental distinctions between contract and tort law in cases involving sophisticated parties.

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