BAKER, J.
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Appellant-plaintiff Indianapolis-Marion County Public Library (Library) appeals the trial court’s entry of summary judgment in favor of appellees-defendants Charlier Clark & Linard, PC, (CCL), Thornton Tomasetti Engineers (TTE), and Joseph G. Burns (collectively, the appellees). Specifically, the Library argues that the judgment entered for the appellees on its negligence claims was erroneous because those claims were not barred under the economic loss doctrine as espoused by our Supreme Court in Gunkel v. Renovations, Inc., 822 N.E.2d 150 (Ind. 2005). Concluding that the trial court properly granted summary judgment for the appellees because the economic loss doctrine precludes the Library from recovering under these circumstances, we affirm.
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The Library argues that the trial court erred in determining that its negligence claims against the appellees were barred by the economic loss doctrine as a matter of law. More specifically, the Library claims that our courts have not extended the economic loss doctrine to cases in which a plaintiff has a direct claim against a design professional outside the realm of contract, and that the economic loss doctrine does not bar the Library’s negligence claims because the appellees’ acts and omissions damaged the Library’s property and caused an imminent risk of danger to the safety of others. The Library further contends that its negligence claims should proceed because the designated evidence established that the appellees misrepresented certain facts and that the economic loss doctrine does not apply in situations where a defendant provides only services rather than a tangible product. We initially observe that the economic loss doctrine developed as a way of enforcing the dictates of privity in product liability law and preventing tort remedies from eliminating the customary limitations involved in cases addressing the sale of goods. Hydro Investors, Inc. v. Trafalgar Power, Inc., 227 F.3d 8, 18 (2d Cir. 2000). Over time, some courts expanded application of the economic loss doctrine to areas of tort outside of product liability involving commercial parties and/or individuals. BRW, Inc. v. Dufficy & Sons, Inc., 99 P.3d 66 (Colo. 2004).
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The Gunkel court expanded the application of the economic loss doctrine to construction projects and explained that the theory underlying the economic loss rule is that the failure of a product or services to live up to economic expectations is best relegated to contract law or to the law of warranty, where the buyer and seller are able to allocate risks and price the product or service accordingly. 822 N.E.2d at 155. Thus, under the economic loss doctrine, “contract is the sole remedy for the failure of a product or service to perform as expected.” Id. at 152. Moreover, this court has held that application of the doctrine in the construction context has resulted in barring tort recovery of economic loss damages from a party involved in a construction project. See Choung v. Iemma, 708 N.E.2d 7, 14 (Ind. Ct. App. 1999) (holding that a homeowner could not recover under a negligence theory when property damage to a residence that arose from a poorly constructed foundation resulted in only economic losses such as the loss of value to the house and the costs to repair and replace).
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. . . [T]he Gunkel court held that “the economic loss rule does not bar recovery in tort for damage that a separately acquired defective product or service causes to other portions or a larger product into which the former has been incorporated.” Id. at 156. However, Gunkel also established that “under the economic loss doctrine, contract is the sole remedy for the failure of a product or service to perform as expected.” Id. And even though construction claims are not necessarily based on defective goods or products, those actions are subject to the economic loss doctrine. Id.
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Here, the appellees were not in privity with the Library. Thus, unlike the circumstances in Gunkel where the homeowners contracted directly with the masonry contractor, the Library did not purchase any services directly from the appellees. Indeed, the designated evidence shows that the Library purchased a package through WMP for a design of the entire project that included renovations to the Cret Building, the parking garage, auditorium, atrium, and the tower. Appellant’s App. p. 98-99. Thus, the complete design of the projects was the “product” that the Library purchased as the first user. Pursuant to the agreement that TTE executed with WMP, TTE and Burns provided the structural design for the project. As a result, the main product included the component that TTE supplied, i.e., a structural design with which the Library had no direct dealings.
As for the damages that the Library sustained, it is apparent that no damage to tangible property resulted, other than that contained within the scope of the project itself. Most of the damages arose from repairs that were undertaken in the parking garage. Although the repairs have a component of physical destruction, the repair and reconstruction of the garage and other portions of the project are economic losses that arose from the Library’s complaint that it did not receive the benefit of its bargain. In other words, the various costs involving the project delay settlements, additional construction management services, extra architectural and engineering services, and legal fees, are all consequential losses that arose from the issues that related to the design and construction of the project. Therefore, it is apparent that the damages claimed by the Library are “economic losses” and are not recoverable in tort.
Notwithstanding our determination that the Library’s damages qualify as economic losses, the Library seeks to distinguish the holding in Gunkel, contending that it should be permitted to pursue its negligence claims against the appellees because of certain exceptions to the economic loss doctrine. In particular, the Library points out that some courts have held that the economic loss doctrine does not apply to claims that involve the negligent design of a project or misrepresentations that are made by an engineer or other design professionals. Moreover, the Library points out that some cases have permitted negligence claims to proceed in the construction context in instances in which the defendant has created a condition that was imminently or inherently dangerous. Finally, the Library asserts that the economic loss doctrine should not apply where services, rather than products, are provided.
The Library attempts to distinguish the holding in Gunkel because it brought design claims against the appellees, which are not merely breach of contract actions under a construction agreement. The Library points out that its claims are based on the appellees’ failure to fulfill their professional duties to the Library to perform design services in conformance with applicable standards of care. As a result, the Library argues that Gunkel, “at most, applies the economic loss doctrine to construction activities, not design activities.” Appellant’s Br. p. 40. The Library notes that TTE, Burns, and CCL did not build the parking garage and that it was not in direct privity with any of them. Thus, the Library asserts that the result reached by courts from other jurisdictions should control; namely, that the economic loss doctrine applies only when the parties are in privity with each other. Moreover, the Library asserts that its negligence claims should be allowed to proceed because a structural engineer owes professional duties that are akin to those owed by other professionals, including attorneys, accountants, physicians, construction managers, and real estate agents. Because of the dearth of Indiana authority regarding certain exceptions to the economic loss doctrine, the Library relies extensively on a Florida case, Moransais v. Heathman, 744 So.2d 973 (Fla. 1999), for the proposition that its negligence action against “professionals,” such as the appellees, should not be barred under the economic loss doctrine. . . .
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Notwithstanding the Library’s assertion and its reliance on Moransais, the claim brought by the Library against the appellees with whom it was not in privity is precisely the type of action that Indiana law does not support. As explained in Gunkel:
Indiana law under the Products Liability Act and under general negligence law is that damage from a defective product or service may be recoverable under a tort theory if the defect causes personal injury or damage to other property, but contract law governs damage to the product or service itself and purely economic loss arising from the failure of the product or service to perform as expected.
822 N.E.2d at 155. . . .
. . . In other words, in accordance with Gunkel, if there is no privity, the economic loss doctrine applies and a third party’s claim against a professional is not favored absent a risk of imminent danger or personal injury.
Even though the Library was not in privity with the appellees, the Library asserts that the economic loss doctrine should not apply in these circumstances because the designated evidence established that the appellees created a condition that was imminently or inherently dangerous. In support of its claim, the Library points out that CTL representatives believed that the parking garage may have been “at serious risk for structural failure if construction were allowed to continue.” Appellant’s App. p. 929. Because of this risk, the Library asserts that it should not have to wait for such injury to result before pursuing tort claims against the appellees.
We note that an exception to the economic loss doctrine arises in the absence of privity when an architect creates a condition that is imminently dangerous to third persons and injury has resulted. Hiatt, 422 N.E.2d at 740. However, there is no exception to the economic loss doctrine that permits recovery in negligence-absent privity-when there has been no physical injury or damage to property. . . .
As discussed above, the undisputed facts demonstrate that there was no accident, injury, or collapse of any structure on the property. Rather, the designated evidence shows that the damage to the Library occurred during the course of construction. Hence, the destructive testing on the structures and removal of work that was already in place were not natural occurrences of sudden harm caused by the defective design. Rather, the only damages claimed by the Library are for the costs to repair the construction defects and all of the consequential losses that arose from those defects. Appellant’s App. p. 634. Thus, in response to the Library’s question as to whether it “should . . . have waited until a catastrophic failure occurred and someone was seriously injured” prior to suing the appellees in negligence, appellant’s br. p. 56, the answer is “yes.” In our view, without recognizable personal injury or property damage, the fact that the Library made repairs to insure the structural integrity of the building is not relevant to the Library’s negligence claims. By the same token, we fully embrace the notion that these circumstances did not compel the Library to remain idle until a catastrophic event occurred before repairing the structure and suing those who owed it contractual duties to build and design the project in a proper manner. This is precisely what the Library did when it pursued breach of contract actions against the various defendants, ultimately settling with WMP and the general contractor.
Based on the foregoing, it is apparent that the appellees satisfied their burden in demonstrating that the economic loss doctrine barred recovery because of the Library’s inability to show the requisite harm necessary to proceed on its negligence claims.
Hence, the imminent danger exception to the economic loss doctrine does not apply in these circumstances, and the trial court properly concluded that that the Library sustained losses that are best relegated to recovery under contract law.
Although we have concluded that the trial court properly applied the economic loss doctrine in barring the Library’s negligence claims against the appellees, the Library nonetheless maintains that those claims should proceed under a “negligent misrepresentation” exception to the doctrine. Appellant’s Br. p. 65-66. More specifically, the Library argues that the designated evidence establishes that the appellees negligently conveyed false and/or misleading information to it about the project during the shop drawing process and meetings that took place at the parking garage construction site. The Library points out that “most” of the jurisdictions that have adopted the negligent misrepresentation exception to the economic loss doctrine follow the Restatement (Second) of Torts, section 552 (1976), which provides that
One who, in the course of his business, profession or employment, or in any other transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance on the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information.
We initially observe that Indiana has not expressly adopted section 552 of the Restatement. However, the Library directs us to Thomas v. Lewis Eng’g, Inc., 848 N.E.2d 758 (Ind. Ct. App. 2006), where this court determined that a professional may be liable to a third party where the professional has actual knowledge that the third party would rely on the professional’s opinion or service. Id. at 762. In light of this rationale, the Library maintains that the negligent misrepresentation exception to the economic loss doctrine is relevant because the Library relied on initial incorrect design drawings and the statements that TTE and Burns made regarding proposed changes to construction when making decisions regarding construction. The Library also contends that CCL provided false information to the Library on several occasions when it failed to note readily apparent defects and deficiencies to the garage structure. As a result, the Library asserts that because the deficiencies to the structure could have been remedied if they had been disclosed prior to the concrete pours, the appellees’ alleged negligent misrepresentations precluded the entry of summary judgment.
The Library correctly observes that a number of jurisdictions have recognized the negligent misrepresentation exception to the economic loss doctrine. . . .
However, the Library directs us to no authority, and we have found none, recognizing that a claim of negligent misrepresentation may be raised to prevent the economic loss doctrine from applying to traditional negligence claims. Indeed, in Thomas v. Lewis Engineering, we observed that negligent misrepresentation is an independent tort, which is premised on section 522 of the Restatement of Torts. 84 N.E.2d at 760-61. When considering this rationale and the fact that the Library did not sue on a negligent misrepresentation theory, this exception to the economic loss doctrine is inapplicable here.
Finally, the Library maintains that the economic loss doctrine does not apply “where a defendant provides solely services and not a tangible product.” Appellant’s Br. p. 67. The Library points out that none of the appellees actually constructed the garage and that they provided only services, including the design drawings and suggestions relating to how the construction should proceed. Therefore, the Library maintains that the economic loss doctrine does not foreclose its negligence claims against the appellees. Notwithstanding the Library’s contention, it has provided no basis under Indiana law and has presented no analysis as to why a “services only” exception to the economic loss doctrine should apply here. In fact, such a notion is contrary to the holding in Gunkel, and, as discussed above, we determined in Bamberger that the doctrine applied to negligence claims when the supply of electrical services was at issue. 665 N.E.2d at 933. As a result, the Library’s contention that “services” are not subject to the economic loss doctrine fails.
In light of our discussion above, we conclude that the negligence claims that the Library brought against the appellees are subject to the economic loss doctrine and are “best relegated to contract law” in accordance with Gunkel v. Renovations, Inc., 822 N.E.2d 150 (Ind. 2005). Moreover, the purported exceptions to the economic loss doctrine do not apply. As a result, the trial court properly entered summary judgment for the appellees on the Library’s negligence claims.
The judgment of the trial court is affirmed.
BAILEY, J., concurs.
BROWN, J., concurring in part and dissenting in part with opinion.
BROWN, J., concurring in part and dissenting in part.
I respectfully concur as to the majority’s conclusion that summary judgment was properly entered in favor of CCL. However, I disagree with the majority’s conclusion that summary judgment based on the economic loss doctrine was appropriate as to TTE.
Gunkel and most of the cases cited by the majority are distinguishable because they did not involve professional services arising outside of contract. Specifically, I find Gunkel distinguishable because the “product or service” at issue was the façade added to the exterior of the plaintiffs’ home and not an engineering or design claim. . . .
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Because the theory of negligence protects interests related to safety and there is at least a question of fact regarding imminent danger as to TTE, summary judgment based on the economic loss doctrine was inappropriate. For the foregoing reasons, I would reverse the trial court’s grant of summary judgment in favor of TTE and affirm the summary judgment in favor of CCL.