Dist. Ct. did not err in dismissing plaintiff’s tort action, alleging that defendants misled plaintiff as to when it would receive payments for prior furniture orders under circumstances where plaintiff had also asserted successful breach of contract claim regarding defendants’ failure to make payments on said prior orders. Under Wisconsin law, economic loss doctrine bars recovery in tort for economic losses sustained from contractual dispute, and plaintiff’s own characterization of its fraud claim dooms instant tort action, where it alleged that defendants’ fraud induced it to continue existing contract at issue in breach of contract claim. Moreover, all fraudulent statements alleged in instant tort claim concerned promises to pay orders at issue in plaintiff’s breach of contract claim. Ct. further noted that plaintiff’s claim for lost profits or for lost business in tort claim were economic losses under Wisconsin law.
Federal 7th Circuit Court
Civil Court
Economic Loss Doctrine