District Court Holds That Moorman Doctrine Bars A Conversion Claim

Lansing v. Carroll, Dist. Court, ND Illinois 2012 - Google Scholar:

The economic loss or Moorman doctrine bars tort claims where the damages are purely economic.    Moorman Mfg. Co. v. Nat'l Tank Co., 435 N.E.2d 443, 453, 91 Ill. 2d 69, 61 Ill. Dec. 746 (Ill. 1982); Fireman's Fund Ins. Co. v. SEC Donohue, Inc., 679 N.E.2d 1197, 1199, 176 Ill. 2d 160, 223 Ill. Dec. 424 (Ill. 1997).

In this case a dispute arose concerning the provisions of a buy-sell agreement.  The plaintiff brought a conversion claim.  Because the conversion claim sought contract damages, it was barred by the Moorman doctrine. The court concluded that the plaintiff's conversion claim was really a breach of contract claim accompanied by the words "willful" and "wanton."

Moorman often swallows up tort claims in business litigation where the parties also have a contract.  The purpose of Moorman is to prevent clever lawyers from turning every breach of contract into a tort.  Interpreting Moorman is one of the main issues facing business litigators today.

Edward X. Clinton, Jr.

www.clintonlaw.net

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