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East River Steamship Corp. v. Transamerica Delaval Inc.

United States Supreme Court
476 U.S. 858 (1986)


East River Steamship Corp. (plaintiff) chartered several supertankers outfitted with turbines made by Transamerica Delaval Inc. (Delaval) (defendant). A defective part within the turbines malfunctioned on one ship, causing damage to other parts of the turbine. The same problem was discovered in two other ships, requiring repairs. In another ship, Delaval’s alleged negligence in manufacturing a valve allowed it to be installed backwards between two turbines, causing damage to the turbines and requiring repair. The district court granted summary judgment for Delaval because the loss was purely economic and the only injury was to the product itself. The court of appeals affirmed. The United States Supreme Court granted certiorari.

Rule of Law


Holding and Reasoning (Blackmun, J.)

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