Mid-Century Insurance Co. v. HIVE Construction, Inc.

2025 CO 17. No. 23SC267. Economic Loss Rule—Willful and Wanton Conduct—Construction Contracts.

April 21, 2025

This case involved limits on the reach of the economic loss rule. Mid-Century Insurance Co. (Mid-Century) contended that because it had alleged willful and wanton conduct by HIVE Construction, Inc., with which Mid-Century’s subrogor had contracted to construct a restaurant, the economic loss rule did not preclude it from asserting a negligence claim, notwithstanding the existence of the contract. Mid-Century thus asked the supreme court to reverse the ruling of the court of appeals division below concluding that the economic loss rule barred its negligence claim.

The court concluded that no exception to the economic loss rule exists for allegations of willful and wanton conduct. The court further concluded, based on longstanding economic loss rule principles, that the rule barred Mid-Century from asserting a negligence claim premised on a duty established by the contract in this case.

Accordingly, the court affirmed the judgment of the division below.