Chapman Custom Homes, Inc. v. Dallas Plumbing Co

In Chapman Custom Homes, Inc. v. Dallas Plumbing Co., 445 S.W.3d 716, 717 (Tex. 2014), the court of appeals held that a homeowner did not have a negligence claim because the homeowner "did not allege violation of any tort duty independent of the contract" and "did not have a contract claim because the homeowner was not a party to the plumbing subcontract." Id. In overruling the court of appeal's judgment, the Texas Supreme Court reasoned that "having undertaken to install a plumbing system in the house, the plumber assumed an implied duty not to flood or otherwise damage the homeowner's house while performing its contract with the builder of the home." Id. at 718. The court stated, "A party cannot avoid tort liability to the world simply by entering into a contract with one party otherwise the economic loss rule would swallow all claims between contractual and commercial strangers." Id.