Judge: Economic-Loss Doctrine Bars Claims Against Franchisee But Not Its Officer

Mealey's (April 16, 2018, 11:51 AM EDT) -- LEXINGTON, Ky. — A Kentucky federal judge on April 5 found that although fraud and negligent misrepresentation claims against a franchise owner are barred as a matter of law by the economic-loss rule, its officer can be personally liable in tort because he had a personal duty independent of the franchisee’s contractual duties not to make material misrepresentations in connection with the sale of the franchise (Younger Brothers Investments LLC v. Active Enterprises, Inc., et al., No. 17-317, E.D. Ky., 2018 U.S. Dist. LEXIS 58182)....