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Butchkosky v. Enstrom Helicopter Corp.

Citations: 784 F. Supp. 882; 1992 U.S. Dist. LEXIS 1954; 1992 WL 32250Docket: 91-10007-CIV

Court: District Court, S.D. Florida; February 7, 1992; Federal District Court

Narrative Opinion Summary

In the case of Butchkosky v. Enstrom Helicopter Corporation, the United States District Court for the Southern District of Florida addressed a motion for partial summary judgment in a product liability action. Plaintiffs Alex Butchkosky and All Air, Inc. pursued claims against Enstrom Helicopter Corporation following a helicopter crash attributed to tail rotor failure. Enstrom sought dismissal of All Air's claims for lost profits and consequential damages, invoking Florida's economic loss rule, which typically restricts tort recovery for economic damages absent personal injury or property damage. However, the court denied the motion, highlighting that the determination of the rule's applicability necessitated a comprehensive examination of the facts due to material disputes. The court underscored that exceptions to the economic loss rule might exist, especially where alternative recovery methods are unavailable, and thereby allowed the plaintiffs to maintain tort claims under strict liability and negligence theories. Consequently, Enstrom's motion for partial summary judgment was denied, enabling the case to proceed. The court's decision emphasized the nuanced application of the economic loss rule, particularly in scenarios lacking contractual privity and alternative remedies.

Legal Issues Addressed

Economic Loss Rule under Florida Law

Application: The court examined whether Florida's economic loss rule barred All Air's tort claims for economic damages without accompanying personal injury or property damage. Despite Enstrom's assertion that the rule applied, the court found that further examination was needed due to potential factual disputes.

Reasoning: The court acknowledged Enstrom's assertion but ultimately denied the motion, stating that the key issue was whether the economic loss rule applied at all, considering that All Air claimed damages under tort theories like strict liability and negligence.

Exceptions to the Economic Loss Rule

Application: The court recognized potential exceptions to the economic loss rule, particularly where no alternative recovery theories exist. The lack of privity and absence of contract remedies allowed the court to consider All Air's tort claims.

Reasoning: The Court concludes that in the current case, with no opportunity for negotiation between the parties and no alternative means of recovery, the economic loss rule does not apply.

Strict Liability Claims in the Absence of Privity

Application: The court allowed All Air to maintain a strict liability claim, emphasizing that denying the claim without privity or contract remedies would contravene the intended scope of the economic loss rule.

Reasoning: Dismissing the plaintiff's recourse would effectively eliminate strict liability claims, contrary to the intent of the economic loss rule.

Summary Judgment Denial

Application: The court denied Enstrom's motion for partial summary judgment, finding that material factual disputes warranted further examination and that the economic loss rule did not preclude All Air's tort claims.

Reasoning: The Court has determined that it does not need to address any potential disputes over material facts. Following a thorough review of the records, the Court orders that Enstrom's motion for partial summary judgment is denied.