Wins

Courts have split over whether a plaintiff can assert a tort claim for fraudulent concealment during the performance of a contract, or whether such claims are barred by the common-law economic loss rule.  The California Supreme Court accepted the Ninth Circuit’s request to resolve the split.  Representing the plaintiff, GMSR argued that such claims are cognizable.  The Supreme Court agreed, holding that a plaintiff can assert a fraudulent concealment claim based on conduct occurring during a contractual relationship if (1) “the elements of the claim can be established independently of the parties’ contractual rights and obligations,” and (2) “the tortious conduct exposes the plaintiff to a risk of harm beyond the reasonable contemplation of the parties when they entered into the contract.”

Click here to read the Supreme Court opinion:  Rattagan v. Uber Technologies, Inc. (2024) 17 Cal.5th 1