John F. Sullivan and Susan B. Sullivan, Plaintiffs/appellants v. Pulte Home Corporation, Defendant/appellee

Summary

The court held that Arizona's economic loss doctrine does not bar negligence claims by homeowners who purchased a defective home from a subsequent owner and therefore had no contract with the builder. The doctrine limits contracting parties to contractual remedies for purely economic construction losses, but it does not preclude tort claims by non-contracting parties merely because an implied-warranty remedy may otherwise exist. The court vacated the specified portions of the intermediate appellate decision and remanded for further proceedings on the negligence claims.