Court of Appeals Affirms Dismissal of Negligence Action for Failure to Establish Duty; Adopts Economic Loss Doctrine

ByDouglas C. Melcher

On September 4, 2014, the District of Columbia Court of Appeals decided Aguilar v. RP MRP Washington Harbour, LLC, No. 13-CV-329, slip op. (D.C. Sept. 4, 2014) in which it considered whether the trial court erred in dismissing a negligence action on the grounds that the plaintiffs failed to establish the existence of a recognized legal duty. Id. at 4-6. By way of background, the plaintiffs in this case “were cooks, servers, bartenders, receptionists, hairstylists, and other employees of various establishments” at a retail complex. Id. at 2. The plaintiffs sought “to recover for lost wages that resulted from the closure of their workplaces due to a flood at the . . . retail complex, which [at all relevant times was] owned and managed by [the defendants].” Id. The plaintiffs alleged that the defendants were negligent in failing to prevent the flooding and, as a result of the flooding, the plaintiffs’ “employers were forced to close” thereby causing the plaintiffs to lose wages. Id. at 3. The Court of Appeals focused its analysis of these allegations on whether the plaintiffs established the existence of a legal duty, which is an essential element of a claim for negligence. Id. at 6-15. In analyzing this issue, the Court of Appeals adopted the “economic loss doctrine” which, in general, “prohibits claims of negligence where a claimant seeks to recover purely economic losses sustained as a result of an interruption in commerce caused by a third party” (i.e., a person with whom the plaintiff has no special relationship). Id. at 1-2, 9-10. Applying this doctrine, the Court of Appeals concluded that the plaintiffs’ action was properly dismissed because the plaintiffs sought purely economic damages, and did not have a special relationship with any of the defendants. Id. at 6-15. For general background about the tort of negligence in the District of Columbia, see Tort Claims and Defenses in the District of Columbia § 8 (2014).

Douglas C. Melcher

I am a licensed attorney with about twenty years of experience in the private practice of law. I focus my practice on advising and representing individuals, small businesses, and non-profits in civil litigation, including trial court proceedings, appeals, administrative hearings, mediation, and arbitration. I have written numerous articles for D.C. Law Blog and other publications, and am the author of Tort Claims and Defenses in the District of Columbia, which is a handbook for lawyers about civil claims for injury to persons, property, reputation, and commercial interests. Please feel free to contact me if you would like to inquire about assistance with a legal matter. I can be reached at dmelcher@melcherlaw.com or 202-427-5753. For further information about my background, click here.