Oct 2011 , Vol. VI, No.1

The Economic-Loss and Source-of-Duty Rules and the Wall between Tort and Contract in Virginia

The Economic-Loss and Source-of-Duty Rules and the Wall between Tort and Contract in Virginia
by Edward E. “Ned” Nicholas III and Sean M. Golden

As the Supreme Court of Virginia has repeatedly observed, it is inevitable that lawyers representing aggrieved parties will try to find ways to make tort claims out of contractual disputes.1 In response to these efforts, Virginia courts have developed a series of doctrines designed to maintain a wall of separation between the realms of contract and tort law. For example, Virginia law prohibits the recovery of punitive damages in contract cases2 and makes the violation of the obligation of  contracting parties to act in good faith a contract rather than a tort claim.(3)

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