Southern California Gas Co. v. Superior Court of Los Angeles County
Annotate this CaseThe Court of Appeal issued a peremptory writ of mandate directing the respondent court to vacate its order overruling the demurrer and issue a new order sustaining the demurrer without leave to amend. In this case, seven businesses filed suit to recover damages for purely economic loss resulting from a massive natural gas leak at a SoCalGas. SoCalGas filed a demurrer to the causes of action based on negligence because plaintiffs' complaint lacked allegations of personal injury, property damage, or the requisite transaction. The respondent court held that SoCalGas should bear all costs its accident caused and there was no recovery for purely economic loss under negligence theories when the precipitating event was a mass tort. Without personal injury, property damage or a special relationship, the general rule that precludes business plaintiffs from recovering for pure economic losses under a negligence theory remains viable. The court held, as a matter of law, that SoCalGas did not owe a duty to prevent plaintiffs' economic loss based on negligent conduct. Accordingly, the court granted the petition for a peremptory writ and vacated the temporary stay.
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