Citadel of Privity

P457 of Textbook

Pure Economic Loss
The citadel of privity has now been vanquished. In most cases the fact that A was in contractual relationship with B alone cannot defeat a claim that a duty was owed by A to C to prevent causing C foreseeable physical injury, A last bastion survives, however. If the harm is pure economic loss, the courts take more seriously the claim that liability should be restricted. Pure economic loss arises when a person suffers pecuniary loss not subsequent upon injury to his person or property. The cases fall into two categories:
1) Negligent misrepresentation or misstatement causing economic loss, and
2) Negligent acts causing economic loss.