U.S. Court of Appeals Reverses $2.7 Million Judgement in Favor of Children’s Furniture Maker

The U.S. Court of Appeals for the Seventh Circuit reversed a $2.7 million judgment in favor of a children’s furniture maker that claimed that a supplier’s non-conforming wood components caused the furniture maker to cancel orders and go out of business.  The appeals court held that, under Indiana law, “a buyer who has received non-conforming goods cannot sue a seller for negligent misrepresentation to avoid the economic loss doctrine, which limits the buyer to contract remedies for purely economic losses.” [8/27/15]