Economic Loss

In Wal-Mart Stores, Inc. v. Xerox State & Local Solutions, Inc., on remand from the Texas Supreme Court, the Fifth Court concluded that various tort claims were precluded by the economic-loss rule in the context of the particular industry involved:

It is inappropriate for the courts of Texas to disrupt the system of agreements of the different states with Xerox for protection of those states’ retailers. Nor is it appropriate for Texas’s courts to provide common-law protection for Wal-Mart when the statutes, regulations, and contracts governing the SNAP EBT program failed to do so. We conclude the economic loss rule precludes our finding Xerox had a general common-law duty to prevent Wal-Mart’s losses from the store-andforward transactions subject to Xerox’s second motion for summary judgment.

No. 05-18-01421-CV (Dec. 12, 2024) (mem. op.). LPHS represented Xerox in this appeal.