JMB Manufacturing, Inc. v. Child Craft, LLC

Record failed to support defendant’s counterclaim seeking purely economic damages under theory of negligent misrepresentation arising out of plaintiff’s delivery of wood products purchased by defendant that did not meet defendant’s specifications, which, according to defendant, required it to cancel orders of its products made from such wood. While Dist. Ct. awarded defendant more than $2.7 million on theory that instant non-conforming goods caused complete destruction of defendant’s business, under Indiana law buyer who has received non-conforming goods cannot seek tort remedy for negligent misrepresentation to avoid economic loss doctrine, which otherwise limits defendant’s damages to contract remedy for any purely economic loss.