Giddings & Lewis, Inc. (a Wisconsin Corporation), Appellants/cross-Appellees v. Industrial Risk Insurers…

Summary

The court adopted Kentucky's economic loss rule for commercial product transactions, barring tort recovery for losses resulting from damage to the product itself and limiting recovery to contract and warranty remedies. It held that the rule applies to negligence, strict liability, and negligent misrepresentation claims, rejected a calamitous-event exception, and treated the integrated Diffuser Cell System as the product bargained for. The fraud-by-omission claim also failed because the manufacturer had no duty to disclose and had not concealed a past or present material fact.