2000 Watermark Association, Inc. v. The Celotex Corporation

CHAPMAN, Circuit Judge:

The central question in this products liability case is whether, under South Carolina law, a plaintiff can recover in negligence for an intangible economic loss. The district court held that such recovery was permissible. We disagree, and we reverse and remand.

I

Asphalt, shingles manufactured by the defendant, Celotex Corporation (Celotex), were installed on a condominium project, 2000 Watermark Place, in 1974, 1975, and 1978. In 1982 the Homeowner’s Association, 2000 Watermark Association, Inc. (Watermark), learned that blisters had appeared on many of these shingles.…