n7 The dissent relies on Aas v. Superior Court, supra, 24
Cal.4th 627 and the concurring and dissenting opinion of Justice Brown in
Jimenez v. Superior Court, supra, 29 Cal.4th 473, 490, for the
contrary proposition that the economic loss rule should be broadly construed to
bar tort recovery in every case where only economic damages occur. While the
bright-line rule the dissent advocates has the advantage of being clear and
easily applied, it is worth noting that the rule's development in the context of
product liability claims and its extension to claims for negligent breach of
contract were not mere fortuities. Dealing with affirmative acts of fraud and
misrepresentation raises different policy concerns than those raised by
negligence or strict liability claims.
Aas was a negligence action brought by homeowners
against the developer, contractor, and subcontractors who constructed their
dwellings. The homeowners sought damages for construction defects that had not
caused any property damage. (Aas v. Superior Court, supra, 24
Cal.4th at p. 632.) We concluded the defects must cause property damage prior to
being actionable in negligence. (Id. at p. 650.) The language in
Jimenez cited by the dissent deals with the propriety of applying the
economic loss rule as a bar in strict liability actions " '[w]hen no safety
concerns are implicated because the damage is limited to the product itself.' "
(Dis. opn., post, at p. 999, quoting Jimenez v. Superior Court,
supra, 29 Cal.4th 473, 490 (conc. & dis. opn. of Brown, J.).) In both
circumstances, " 'recourse ... in contract law to enforce the benefit of the
bargain' " is sufficient. (Ibid.) In contrast, Robinson's claims are
based on Dana's intentional and affirmative misrepresentations that risked
physical harm to persons. Robinson's helicopters are flown by and carry people.
A properly functioning sprag clutch is vital to the safe performance of the
aircraft and compliance with the certificate requirement is part of an
integrated regulatory scheme intended to ensure their safe operation. The
economic loss rule is designed to limit liability in commercial activities that
negligently or inadvertently go awry; not to reward malefactors who
affirmatively misrepresent and put people at risk.