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LSDefine

Simple English definitions for legal terms

other-property rule

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A quick definition of other-property rule:

Other-Property Rule: This rule says that if a product is defective and only damages itself, then the person who bought the product cannot sue for damages. For example, if a toy breaks and only damages itself, the person who bought the toy cannot sue the company that made the toy for any money. This rule was established in a court case called East River S.S. Corp. v. Transamerica Delaval, Inc. in 1986.

A more thorough explanation:

The other-property rule is a principle in tort law that states that a person cannot recover damages for a product defect if the only damage caused by the defect is to the product itself. This means that if a defective product damages only itself and not any other property or person, the injured party cannot recover any compensation for the damage.

For example, if a person buys a faulty laptop that malfunctions and damages only the laptop itself, the person cannot sue the manufacturer for damages under the other-property rule. Similarly, if a car's engine fails due to a manufacturing defect and damages only the car itself, the owner cannot recover damages for the engine under this rule.

The other-property rule was established in the case of East River S.S. Corp. v. Transamerica Delaval, Inc. in 1986. In this case, the plaintiffs were shipowners who had purchased turbines from the defendant manufacturer. The turbines failed and caused damage only to themselves, not to any other property or person. The Supreme Court ruled that the shipowners could not recover damages under the other-property rule.

other-insurance clause | OTP

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