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For the last twenty-five years, courts struggled with—and sharply divided on—the scope of California’s “economic loss rule,” which limits the damages available to contracting parties when one of them inflicts economic loss on the other.  Before Rattagan, there was a split of authority as to whether a plaintiff can assert a tort claim for fraudulent concealment during the performance of a contract, or whether such claims are barred by the common-law economic loss rule.  The California Supreme Court accepted the Ninth Circuit’s request to resolve the split.

Representing the plaintiff, GMSR argued that such claims are cognizable, based on core California public policies.  The Supreme Court agreed, holding that a plaintiff can assert a fraudulent concealment claim based on conduct occurring during a contractual relationship if (1) “the elements of the claim can be established independently of the parties’ contractual rights and obligations,” and (2) “the tortious conduct exposes the plaintiff to a risk of harm beyond the reasonable contemplation of the parties when they entered into the contract.”

The CLAY award recognizes lawyers for their achievements that have had a major impact on society and the law.   Congratulations to Cindy Tobisman, Alana Rotter, Jeffrey Raskin, and Laura Lim, GMSR’s 2025 CLAY Award recipients!

Rattagan v. Uber Technologies, Inc. (2024) 17 Cal.5th 1.

To learn more about the case and the award in the Daily Journal, click here (subscription required): https://www.dailyjournal.com/articles/385291