U.S. Bank, N.A. v. Integrity Land Title Corp.

SULLIVAN, Justice.

A lender seeks to hold a title commitment issuer, with which it had no contrac tual privity, liable for negligence in failing to uncover a defect during the title search. The title company claims it has no contractual obligation to lender, and that the so-called "economic loss rule" prevents lender from recovering in tort. We provide extensive background on the economic loss rule, a rule that prevents recovery in tort for purely pecuniary harm, and the exceptions to the rule in another case we decide today, Indianapolis-Marion County Publie Library v. Charker Clark & Linard,…