Digiknow, Inc. v. PKSL Cards, Inc.
2011 Ohio 3592
Ohio Ct. App.2011Background
- Digiknow, Inc. sued PKXL Cards, Inc. to recover $33,725.52 for website design costs.
- PKXL counterclaimed for professional negligence in Digiknow's deliverable website.
- Court granted summary judgment on PKXL's counterclaim; Digiknow recovered a judgment on its claim.
- The case proceeded to trial on Digiknow's complaint; the jury awarded Digiknow $33,725.52 plus interest.
- PKXL appeals, arguing the counterclaim sounded in contract and/or that the economic loss rule barred recovery for tort damages.
- The appellate court analyzes whether PKXL's counterclaim was tort-based and whether the economic loss doctrine applies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Counterclaim type (tort or contract)? | PKXL argues contract claim. | PKXL argues it pleaded contract; Digiknow contends tort. | Counterclaim sounded in tort. |
| Economic loss doctrine applicability? | Economic losses are recoverable in contract; no tort framing. | Damages sought are purely economic; barred in tort. | Economic-loss doctrine bars recovery of economic loss in tort; summary judgment affirmed. |
Key Cases Cited
- Corporex Dev. & Constr. Mgt., Inc. v. Shook, Inc., 106 Ohio St.3d 412 (2005-Ohio-5409) (economic-loss doctrine supports tort/conduct separation)
- Floor Craft Floor Covering, Inc. v. Parma Community Gen. Hosp. Assn., 54 Ohio St.3d 1 (1990, 560 N.E.2d 206) (limits on contract-versus-tort recovery in commercial disputes)
- E. River S.S. Corp. v. Transamerica Delaval, Inc., 476 U.S. 858 (1986) (tort vs. contract boundary and public policy considerations)
- Rich Prods. Corp. v. Kemutec, Inc., 66 F.Supp.2d 937 (E.D. Wis. 1999) (illustrates limits of redress for sufficiently egregious negligence)
- Chemtrol Adhesives, Inc. v. Am. Mfrs. Mut. Ins. Co., 42 Ohio St.3d 40 (1989, 537 N.E.2d 624) (economic losses not cognizable in tort absent special circumstances)