Veolia Water Technologies, Inc. v. Antero Treatment LLC, Antero Resources Corporation, Antero Midstream Partners LP…

Summary

The court held that the economic loss rule did not bar Antero's fraudulent-inducement claim because the parties' agreements were separate, stand-alone transactions and Veolia's material nondisclosures occurred before and induced execution of the design/build agreement. The court also concluded that the implied covenant of good faith and fair dealing did not subsume the alleged tort duty because the contract's core power and salt-quality requirements were nondiscretionary. The court affirmed the judgment below on different grounds and remanded for determination of reasonable attorney fees.