Orrin Hatch: “I rise to oppose the Edwards amendment, which basically strikes the economic loss section of S. 96, the Y2K bill. My…”

“I rise to oppose the Edwards amendment, which basically strikes the economic loss section of S. 96, the Y2K bill. My observation is that during this debate there has been much confusion over the economic loss section. Let me attempt to clarify this matter. It is important to note that the economic loss rule is a legal principle that has been adopted by the U.S. Supreme Court and by most States. The rule basically prevents "tortification" of contract law, the trend that I view with some alarm. The rule basically mandates that when parties have entered into contracts and the contract is silent as to "consequential damages," which is the contract term for economic losses, the aggrieved party may not turn around and sue in tort for economic losses. Thus, the expectation of the parties are protected from undue manipulation by trial attorneys.”