James E. Carroll, Jr. v. Isle of Palms Pest Control, Inc.

Syllabus

Petitioner James E. Carroll, Jr. signed a contract with Respondents for termite protection service for his Isle of Palms home. The contract specified the protection would consist solely of Respondents installing and monitoring \the Exterra Termite Interception and Baiting System (Exterra) for the purpose of controlling subterranean termite infestations of the covered property.\ Respondents never kept their promise to maintain the bait stations. Instead, without letting Carroll know, they abandoned the bait station system and began treating his home with a liquid application. Carroll renewed the bait station contract each year. Some ten years later, it was discovered Carroll's home was riddled with termites. Carroll sued Respondents for negligence and breach of contract. The trial court granted Respondents summary judgment as to the negligence claim, ruling that because Carroll's damages all flowed from Respondents' failure to provide adequate termite protection, the economic loss rule operated to confine his remedy to the breach of contract action. The court of appeals affirmed. We granted certiorari and now reverse.