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Annett Holdings, Inc. v. Kum & Go, L.C.

Supreme Court of Iowa

801 N.W. 2d 499 (2011)

Torts
Relevant factsFree

Annett (plaintiff) accepted contractual responsibility for fraudulent Comdata credit-card purchases by its employees and reimbursed Comdata after a TMC employee defrauded a Kum & Go (defendant) fuel terminal; Annett, having no contract with Kum & Go, sued Kum & Go for negligence to recover its reimbursement costs, and the district court held the economic-loss rule barred the claim.

IssueFree

Whether the economic-loss rule bars negligence claims if the plaintiff has suffered only economic loss, even if there is no privity of contract between the plaintiff and the defendant.

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