AMERICAN EXPRESS TRAVEL RELATED SERVICES, CO., INC., APPELLANT,
v.
SYMBIONT SOFTWARE GROUP, INC., ET AL., APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
American Express appealed the dismissal of its negligent hiring, retention, and security claims against Symbiont Software Group and its president based on the economic loss rule. The court reversed, holding that American Express's tort claims were independent of any contractual relationship and therefore not barred by the economic loss rule.
The court reversed the dismissal, holding that American Express's tort claims were independent of any contractual relationship and therefore constituted an exception to the economic loss rule and were not barred from proceeding.
[1] The economic loss rule bars tort claims where there is no personal injury or damage to other property.
[2] An exception to the economic loss rule exists for tort actions that are independent of any contractual breach.
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“The economic loss rule bars claims in tort where there is no personal injury or damage to other property.”
Establishes the general rule that the economic loss rule applies to bar purely economic losses in tort
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceSymbiont Software Group sold point-of-sale systems to retail establishments for processing charge card payments. Symbiont's former employee, David Pro…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Negligent Security cases and more on FLexlaw
PER CURIAM.
American Express Travel Related Services Company, Inc. [American Express] appeals the dismissal, based on the economic loss rule, of its complaint against Symbiont Software Group, Inc. [Symbiont] and David Schilling. For the reasons which follow, we reverse.
American Express sued Symbiont for negligent hiring and retention, and sued its president Schilling for negligent security in connection with the theft of the financial information of American Express members by Symbiont’s former employee, David Prouty. Symbiont sold to retail and service establishments point-of-sale systems (used for payment by charge cards such as American Express). In its complaint, American Express alleges that Symbiont gave Prouty access to confidential financial information stored on its systems, notwithstanding actual or constructive notice of Prouty’s lack of fitness for employment. According to American Express, Symbiont’s failure to properly secure its system resulted in financial losses to American Express when Prouty stole and misused the financial information of its members. Symbiont and Schilling successfully moved to dismiss American Express’ complaint based on the economic loss rule.
The economic loss rule bars claims in tort where there is no personal injury or damage to other property. Casa Clam Condominium Ass’n v. Charley Toppino & Sons, Inc., 620 So. 2d 1244 (Fla.1993); Clayton v. State Farm Mut. Auto. Ins. Co., 729 So. 2d 1012 (Fla. 3d DCA 1999). The rule is premised on “the basic difference between contract law, which protects expectations, and tort law, which is determined by the duty owed to an injured party.” Casa Clara, 620 So. 2d at 1246. For this reason, an exception has been carved out for tort actions which are independent of any contractual breach. PK Ventures, Inc. v. Raymond James & Assocs., 690 So. 2d 1296 (Fla.1997); HTP, Ltd. v. Lineas Aereas Costarricenses, S.A., 685 So. 2d 1238 (Fla.1996); Clayton v. State Farm. In this case the claims pled were totally independent of any contracts which may have existed between Symbiont and any of the buyers or users of their point-of-sale systems.
Accordingly, we reverse the dismissal of appellant’s complaint and remand the cause for further proceedings.
Reversed and remanded.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Lewis B. Freeman for NorthAmerican Fin. Servs., Inc. v. Dean Witter Reynolds, Inc., 865 So. 2d 543 (Fla. 2d DCA 2003)…may be impermissible under one of the theories collectively described as the economic loss doctrine, see Monroe v. Sarasota County Sch. Bd., 746 So. 2d 530 (Fla. 2d DCA 1999), but see Am. Express Travel Related Servs. Co. v. Symbiont Software Group, 837 So. 2d 434 (Fla. 3d DCA 2002), unless it can be alleged as professional malpractice claim, see Moransais v. Heathman, 744 So. 2d 973 (Fla.1999). As brought by the customers, of course, such a claim also raises questions as to whether the professional owes a du…
-
Ramos v. Fla. Power & Light Co., 21 So. 3d 91 (Fla. 3d DCA 2009)…So. 2d 1244 (Fla.1993). In this case, however, Ramos’ claims specifically involve alleged acts and property damages that are “independent of any contractual breach.” Am. Express Travel Related Servs. Co., Inc. v. Symbiont Software [*95] Group, Inc., 837 So. 2d 434, 435 (Fla. 3d DCA 2002), review denied, 851 So. 2d 729 (Fla.2003). The harm claimed by Ramos is “above and beyond disappointed expectations” or the “benefit of the bargain” based on the FPL Tariff. Casa Clara Condo. Ass’n, 620 So. 2d at 1246. Such t…
Authorities Cited
- HTP, Ltd. v. Lineas Aereas Costarricenses, S.A., 685 So. 2d 1238 (Fla. 1996)
- CASA Clara Condo. Ass'n, Inc. v. Charley Toppino & Sons, Inc., 620 So. 2d 1244 (Fla. 1993)
- PK Ventures, Inc. v. Raymond James & Assocs., Inc., 690 So. 2d 1296 (Fla. 1997)
- Dentaland, P.A. v. ST. Stephen Ltd. P'ship, 729 So. 2d 1012 (Fla. 3d DCA 1999)