Social Media Cases
CourtCalifornia Court of Appeal
Date FiledNovember 5, 2026
DocketB340661
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
Filed 11/5/26
CERTIFIED FOR PUBLICATION
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION TWO
SOCIAL MEDIA CASES B340661
SAN DIEGO UNIFIED JCCP No. 5255
SCHOOL DISTRICT,
Plaintiff and Appellant,
v.
META PLATFORMS, INC. et
al.,
Defendants and
Respondents.
[And three other related
cases.]
APPEALS from a judgment of the Superior Court of Los
Angeles County, Carolyn Kuhl, Judge. Affirmed.
The School Board of Brevard County, Florida v. Meta
Platforms, Inc. (No. B340659), Vancouver School District No. 37
v. Meta Platforms, Inc. (No. B340662), and West Warwick Public
Schools, Kent County, State of Rhode Island v. Meta Platforms,
Inc. (No. B340667)
Panish|Shea|Ravipudi, Brian J. Panish, Rahul Ravipudi,
Jesse Creed; Esner, Chang, Boyer & Murphy, Shea S. Murphy,
Kiran R. Iyer; Wagstaff & Cartmell, Austin Brane; Morgan &
Morgan and Josh Autry for Plaintiff and Appellant San Diego
Unified School District.
Panish|Shea|Ravipudi, Brian J. Panish, Rahul Ravipudi,
Jesse Creed; Esner, Chang, Boyer & Murphy, Shea S. Murphy,
Kiran R. Iyer; Wagstaff & Cartmell, Austin Brane, Adam S.
Davis; Morgan & Morgan and Josh Autry for Plaintiff and
Appellant School Board of Brevard County, Florida.
Panish|Shea|Ravipudi, Brian J. Panish, Rahul Ravipudi,
Jesse Creed; Esner, Chang, Boyer & Murphy, Shea S. Murphy,
Kiran R. Iyer; Keller Rohrback, Dean N. Kawamoto, Felicia J.
Craick; Morgan & Morgan and Josh Autry for Plaintiff and
Appellant Vancouver School District No. 37.
Panish|Shea|Ravipudi, Brian J. Panish, Rahul Ravipudi,
Jesse Creed; Esner, Chang, Boyer & Murphy, Shea S. Murphy,
Kiran R. Iyer; Morgan & Morgan and Josh Autry for Plaintiff and
Appellant West Warwick Public Schools, Kent County, State of
Rhode Island.
Munger, Tolles & Olson, Jonathan H. Blavin and
Victoria A. Degtyareva for Defendant and Respondent Snap Inc.
King & Spalding, Paul J. Watford, Bailey J. Langner,
David P. Mattern and Geoffrey M. Drake for Defendants and
Respondents TikTok Inc. and ByteDance Inc.
Covington & Burling, Mark W. Mosier, Ashley M.
Simonsen and Christian J. Pistilli for Defendants and
Respondents Meta Platforms, Inc.; Facebook Holdings, LLC;
Facebook Operations, LLC; Meta Payments, Inc.; Facebook
Technologies, LLC; Instagram, LLC; and Siculus LLC.
2
Williams & Connolly, Ashley W. Hardin, George A. Borden
and Neelum J. Wadhwani for Defendants and Respondents
Google LLC and YouTube, LLC.
____________________
In recent years, various plaintiffs have brought numerous
legal claims against social media companies. In this opinion, we
address only two causes of action—negligence and public
nuisance—in the context of the laws of California, Florida,
Washington, and Rhode Island, brought by school districts. The
holdings we reach here must be understood within that context.
In this coordinated proceeding, four school districts1
(Plaintiffs) sued a group of social media companies2 (Defendants).
Plaintiffs generally claimed Defendants created a “mental health
crisis” among their students that harmed Plaintiffs by disrupting
their educational mission, requiring them to spend more money
and staff time to address student mental health and discipline,
and causing students to vandalize their property. Plaintiffs
appeal the trial court’s order sustaining Defendants’ demurrer to
all four complaints on the ground they failed to allege any
cognizable causes of action.
1 San Diego Unified School District (San Diego), School
Board of Brevard County, Florida (Brevard), Vancouver School
District No. 37 (Vancouver), and West Warwick Public Schools,
Kent County, State of Rhode Island (West Warwick).
2 Snap Inc. (Snap); TikTok Inc. and ByteDance Inc.
(collectively, TikTok); Meta Platforms, Inc., Facebook Holdings,
LLC, Facebook Operations, LLC, Meta Payments, Inc., Facebook
Technologies, LLC, Instagram, LLC, and Siculus LLC
(collectively, Meta); and Google LLC and YouTube, LLC
(collectively, YouTube).
3
We acknowledge the serious allegations of mental health
harms experienced by many students and the impact of those
harms on Plaintiffs’ schools and student bodies. We affirm the
trial court’s ruling, however, because it follows existing
precedents which we too are bound to follow, and which establish
that these plaintiffs cannot proceed under the legal theories and
factual allegations they have pled.
FACTUAL BACKGROUND
We draw this factual summary from the operative
complaints. (See Howard Jarvis Taxpayers Assn. v. City of La
Habra (2001) 25 Cal.4th 809, 814; Wozniak v. YouTube, LLC
(2024) 100 Cal.App.5th 893, 907 (Wozniak).)
According to Plaintiffs, “[s]chool districts across the nation
are battling an unprecedented mental health crisis among their
students and serious disruption to their educational public
mission, fueled by Defendants’ creation and promotion of
addictive and dangerous social media platforms.” Because
“[s]tudents are now addicted to [those] platforms in droves,”
districts have experienced a “substantial interference with [their]
operations” and bear “a large burden” to provide mental health
services to their students. Plaintiffs seek to hold Defendants
liable, not for the harms allegedly imposed upon students, but for
those imposed upon districts.
Plaintiffs allege Defendants’ platforms are addictive and
were “designed, developed, produced, operated, promoted,
distributed, and marketed . . . to maximize the number of
children, including [each] Plaintiff’s students, who download and
use them compulsively.”
Particular “design features” embedded in Defendants’
platforms are allegedly meant to “maximiz[e] youth engagement”
4
and profit Defendants via advertising revenue. For example, the
complaints describe “an algorithmically-generated, endless feed
to keep users scrolling in an induced ‘flow state’; ‘intermittent
variable rewards’ that manipulate dopamine delivery to intensify
use; ‘trophies’ to reward extreme usage; metrics and graphics to
exploit social comparison; incessant notifications that encourage
repetitive account checking by manufacturing insecurity;
inadequate, essentially illusory age verification protocols; and
deficient tools for parents that create the illusion of control.”
Because of their young ages and developmental stages,
“children and adolescents are uniquely vulnerable and easy
targets” for these features and “tend to engage in addictive and
compulsive use” of Defendants’ platforms. Defendants designed
their platforms in this manner, “even though they knew or should
have known [those] choices would have a detrimental effect on
school operations and [students], including those in Plaintiff[s’]
district[s], leading to serious problems in schools.”
Plaintiffs allege large numbers of children and teens in the
United States use Defendants’ platforms, many on a daily or
more frequent basis, “including during the school day.” One
survey of teenage girls who use social media indicated between
33 percent and 45 percent “felt addicted” to the platforms, and
some Defendants were aware certain users felt the platforms
were addictive and that compulsive use interfered with school
and family responsibilities.
Nevertheless, “Defendants wanted children using their
[platforms] during the school day.” Internal documents showed
some Defendants encouraged “use of their addictive platforms
[in] entire school communities” including “during class.”
5
Plaintiffs further allege various research studies show the
problematic “features engineered into Defendants’ platforms—
particularly when used multiple hours a day—can have a
‘detrimental effect on the psychological health of [their] users,’
including compulsive use, addiction, body dissatisfaction, anxiety,
depression, and self-harming behaviors such as eating disorders.”
(Original brackets.) Each Defendant was “aware of research
connecting use of their [platforms] with harm to [their] users’
wellbeing.”
In that regard, some research has shown “addictive and
compulsive use of Defendants’ platforms leads to negative mental
and physical outcomes for kids,” and children and teens “addicted
to [Meta’s platform] are more likely to engage in self-injurious
behavior, such as cutting and suicide.” But social media addiction
is not uniform across users: instead, it “is more prevalent among
younger age groups.” Likewise, use of the platforms appears to
have a significant effect on some female teens, particularly as it
relates to negative body image.
The overall mental health of American teens has decreased
over the past 15 to 20 years, with more reporting “persistent
sadness or hopelessness,” increased suicide rates, and increased
emergency room visits for anxiety, mood, and attention disorders.
Plaintiffs allege “Defendants’ platforms have triggered
depression, anxiety, eating disorders, self-harm, and suicidality
among thousands of children, including students in Plaintiff[s’]
schools, to which Plaintiff[s] must respond.”
As a result of Defendants’ actions, “[s]ocial media addiction
is widespread within Plaintiff[s’] schools and has resulted in a
myriad of harms to Plaintiff[s].” Plaintiffs allege they were
harmed by Defendants’ conduct in three primary ways.
6
First, “[t]he mental health crisis caused and/or significantly
contributed to by Defendants has caused an ongoing behavioral
disruption in Plaintiff[s’] school[s], and Plaintiff[s] [have] had to
take steps to mitigate [that] disruption” by, among other things:
“hiring additional personnel”; “developing additional resources”;
and “increasing training for teachers and staff to identify” and
“address mental, emotional, and social health issues” among
students.
Second, “Plaintiff[s’] educational mission [is] hindered”
because staff must “spend[] more time addressing issues related
to social media [and] less time teaching.” For example, some
“teachers must interrupt or stop instruction frequently” to
manage student cell phone use. “[D]isciplinary incidents tied to
cell phones and social media” have “required [staff] to divert time
from education . . . toward investigating and resolving [those]
incidents.” This has led Plaintiffs to “increas[e] disciplinary
services” and to “consider strategies like purchasing additional
learning materials to aid students who are behind on their
progress . . . and purchasing faraday bags . . . to disable phones.”
Third, Defendants’ conduct “adversely impact[ed]
Plaintiff[s’] use and enjoyment of [their] property,” in part by
“interfer[ing] with the functions and operations of Plaintiff[s’]
schools.” Some schools “have seen a rise in vandalism of school
property coinciding with the youth mental health crisis,” and
some school districts have had to “address[] property damaged as
a result of students acting out because of mental, social, and
emotional problems Defendants’ conduct caused,” or because of
“students’ . . . compulsive participation in social media challenges
that direct destruction . . . of school property.” With regard to the
latter, “TikTok’s algorithms . . . promote challenges that
7
specifically target school districts” and encourage viewers to
vandalize school property. That caused some schools to sustain
damage to restroom fixtures.
PROCEDURAL HISTORY
The operative complaints in all four cases were filed in
January 2024. San Diego’s operative complaint alleged causes of
action for public nuisance, negligence and gross negligence under
California law. (Case No. B340661.)
Vancouver’s operative complaint alleged one cause of action
for public nuisance under Washington law. (Case No. B340662.)
West Warwick’s operative complaint alleged causes of
action for negligence, gross negligence, and public nuisance under
Rhode Island law. (Case No. B340667.)
Brevard’s operative complaint alleged causes of action for
negligence, gross negligence, and public nuisance under Florida
law. (Case No. B340659.)
These four complaints were “identified for the initial round
of demurrer briefing” in this Judicial Council Coordinated
Proceeding. Defendants duly filed an omnibus demurrer to all
four complaints in February 2024. Among other things, they
argued: Plaintiffs’ alleged injuries derived from those of their
students and thus were not cognizable in nuisance or negligence;
the nuisance claims were overly broad, failed to allege
interference with any public right or the rights of an entire
community, and Plaintiffs lacked standing to bring them; and
Plaintiffs’ negligence claims failed because they did not allege a
cognizable legal duty and were barred by the economic loss
doctrine.
The trial court granted the demurrer in its entirety in June
2024. Because Plaintiffs had “not expressly sought leave to
8
amend, nor . . . suggested a factual basis for further amendment,”
the court sustained the demurrer without leave to amend. 3
Judgment was entered on July 16, 2024. Plaintiffs timely
appealed. (See Cal. Rules of Court, rule 8.104(a).) We
consolidated the cases for purposes of oral argument and
decision.
DISCUSSION
I. Applicable Law and Standard of Review
A. Standard of Review
We review de novo the trial court’s decision a complaint
fails to “ ‘allege[] facts sufficient to state a cause of action.’ ”
(Wozniak, supra, 100 Cal.App.5th at p. 906.) We “give the
complaint a reasonable interpretation,” assuming the truth of
“ ‘all material facts properly pleaded, but not contentions,
deductions or conclusion of fact or law.’ ” (Blank v. Kirwan (1985)
39 Cal.3d 311, 318.) The plaintiff “ ‘ “must show the complaint
alleges facts sufficient to establish every element of each cause of
action.” ’ ” (Wozniak, at p. 907.) We may affirm the trial court’s
order “on any ground stated in the demurrer.” (Association for
Los Angeles Deputy Sheriffs v. County of Los Angeles (2019)
42 Cal.App.5th 918, 934.)
B. Negligence Causes of Action
In this part, we first address a few principles common to
the three negligence causes of action. Then, in parts II. through
IV., we analyze each negligence cause of action under the law of
the relevant state and explain why the trial court correctly
determined each plaintiff failed to state a claim.
3 Vancouver is the only plaintiff that challenges the denial of
leave to amend, with regard to the Washington public nuisance
cause of action.
9
1. A Duty of Care Is an Element of
Negligence
In each state at issue, a required element of negligence is
the existence of a duty of care by the defendant to the plaintiff. In
considering the existence of a duty, “ ‘[t]he foreseeability of a
particular kind of harm plays a very significant role.’ ”4 (Banks v.
Bowen’s Landing Corp. (R.I. 1987) 522 A.2d 1222, 1224, 1226; see
also Kesner v. Superior Court (2016) 1 Cal.5th 1132, 1142; Gas
Leak Cases, at pp. 398, 400; McCain v. Florida Power Corp. (Fla.
1992) 593 So.2d 500, 502–505 (McCain).) Nevertheless, a court is
not tasked with “ ‘decid[ing] whether a particular plaintiff’s
injury was reasonably foreseeable in light of a particular
defendant’s conduct, but rather . . . whether the category of
negligent conduct at issue is sufficiently likely to result in the
kind of harm experienced that liability may appropriately be
imposed.’ ” (Cabral v. Ralphs Grocery Co. (2011) 51 Cal.4th 764,
772; Banks, at pp. 1226–1227; see also Williams v. Davis (Fla.
2007) 974 So.2d 1052, 1056, fn. 2 (Williams) [the defendant’s
activity must have “created a general zone of foreseeable danger
of a certain type of harm to others”].)
Here, Plaintiffs allege they suffered three general kinds of
harm: (1) “incur[ring] significant financial costs” to address the
youth mental health crisis allegedly created by Defendants’
platforms; (2) “frustrat[ion] [of their] pedagogical mission” in
diverting staff time and resources from education to counter the
disruptive effects of the crisis; and (3) property damage inflicted
4 Other factors may also bear upon duty (see Flynn v.
Nickerson Community Center (R.I. 2018) 177 A.3d 468, 479
(Flynn); Southern California Gas Leak Cases (2019) 7 Cal.5th
391, 398–400 (Gas Leak Cases)), but we focus on foreseeability.
10
by students. In part V., we conclude Plaintiffs’ allegations their
missions were frustrated do not state a cognizable negligence
claim, and in part VI., we conclude Defendants have immunity
from liability arising from Plaintiffs’ alleged property damage.
That leaves Plaintiffs with only alleged financial harms—
which we conclude in parts II. through IV., post, are not
recoverable in negligence in these circumstances under
California, Rhode Island, or Florida law. Thus, Plaintiffs have not
adequately pled any of the Defendants owed them a duty of care
under the laws of their respective states.5 The trial court properly
sustained Defendants’ demurrer to the negligence causes of
action.6
2. In General, Purely Economic Harms Are
Not Recoverable
The crux of the negligence causes of action is the
applicability of the so-called “economic loss rule.” Our Supreme
Court has described the rule as “deceptively easy to state: In
5 Our conclusion likewise forecloses Plaintiffs’ argument
Defendants owed a duty to warn them of harms posed by
Defendants’ platforms. Defendants have no duty to warn of a
purported peril they have no duty to prevent. (See Jane Doe No. 1
v. Uber Technologies, Inc. (2022) 79 Cal.App.5th 410, 424;
Saunders v. Baseball Factory, Inc. (Fla.Ct.App. 2023) 361 So.3d
365, 368, 370–371 (Saunders); Thomas v. Amway Corp. (R.I.
1985) 488 A.2d 716, 718, 722.)
6 San Diego and West Warwick do not appeal the dismissal
of their gross negligence causes of action. Brevard does not argue
its gross negligence claim should survive if its negligence cause of
action fails. We therefore affirm the judgment on Brevard’s gross
negligence cause of action for the reasons discussed in part IV.,
post.
11
general, there is no recovery in tort for negligently inflicted
‘purely economic losses,’ meaning financial harm unaccompanied
by physical or property damage.” (Sheen v. Wells Fargo Bank,
N.A. (2022) 12 Cal.5th 905, 922 (Sheen).)
While that may seem straightforward, the reasoning
underlying the application of the rule can vary, and different
jurisdictions recognize different exceptions to it. For example,
some courts use the term “economic loss rule” to describe a
principle “bar[ring] claims in negligence for pure economic losses”
among parties in contractual privity. (Sheen, supra, 12 Cal.5th at
pp. 922–923; see also Franklin Grove Corp. v. Drexel (R.I. 2007)
936 A.2d 1272, 1275 (Franklin Grove); Curd v. Mosaic Fertilizer,
LLC (Fla. 2010) 39 So.3d 1216, 1223 (Curd), receded from on
other grounds by Lieupo v. Simon’s Trucking, Inc. (Fla. 2019) 286
So.3d 143, 144–145.) In California, we refer to this facet of the
“rule . . . as the ‘contractual economic loss rule.’ ” (Sheen, at
p. 923.) That doctrine is motivated by the principle that in
contractual disputes, the scope of duty is better defined by the
provisions in the parties’ agreement. (Ibid.; Franklin Grove, at
p. 1275.) That facet is not relevant to this case.
Instead, we are concerned here with a facet of the economic
loss rule arising from courts’ efforts to impose “[m]eaningful
limits on [the scope of] tort liability.” (Gas Leak Cases, supra,
7 Cal.5th at p. 414; see Sheen, supra, 12 Cal.5th at p. 922;
Monroe v. Sarasota County School Bd. (Fla.Dist.Ct.App. 1999)
746 S.2d 530, 534–535 (Monroe); Builders Specialty Co. v. Goulet
(R.I. 1994) 639 A.2d 59, 60 (per curiam) (Builders Specialty).) Our
Supreme Court described the need for those limits more than
30 years ago with the following illustration: “[A]ssume[] a
defendant negligently causes an automobile accident that blocks
12
a major traffic artery such as a bridge or tunnel. Although
defendant would be liable for personal injuries and property
damage suffered in such an accident, it is doubtful any court
would allow recovery by the myriad of third parties who might
claim economic losses because the bridge or tunnel was
impassible.” (Bily v. Arthur Young and Co. (1992) 3 Cal.4th 370,
400, fn. 11.)
The economic losses suffered by those third parties may
theoretically be foreseeable, but more is required to impose a
duty of care in that context. (Gas Leak Cases, supra, 7 Cal.5th at
p. 401.) While “foreseeability ‘ “may set tolerable limits for most
types of physical harm, it provides virtually no limit on liability
for nonphysical harm” ’ because “on ‘ “clear judicial days,” ’ courts
‘ “can foresee forever.” ’ ” (Ibid.) Thus, even though “denying
recovery for purely economic losses” may appear somewhat
arbitrary, this “admittedly imperfect legal regime . . . governs in
most jurisdictions.” (Id. at p. 412.)
Because that legal regime applies in California, Rhode
Island, and Florida, Plaintiffs’ negligence causes of action were
properly dismissed.
C. Public Nuisance Causes of Action
Nuisance suits are generally either public or private.
(People ex rel. Gallo v. Acuna (1997) 14 Cal.4th 1090, 1103
(Gallo); see also Prior v. White (Fla. 1938) 180 So. 347, 355
(Prior); State v. Lead Industries, Ass’n, Inc. (R.I. 2008) 951 A.2d
428, 443 (Lead Industries); see also Animal Legal Defense v.
Olympic Game Farm (Wash. 2023) 533 P.3d 1170, 1172 (Animal
Legal).) “[A] private nuisance is a civil wrong based on
disturbance of rights in land[,] while a public nuisance is [based]
upon an interference with the rights of the community at large.”
13
(Venuto v. Owens-Corning Fiberglas Corp. (1971) 22 Cal.App.3d
116, 124; see also Gallo, at p. 1103.)
“Nuisance has been described as an ‘impenetrable jungle’ ”
that “ ‘mean[s] all things to all people’ ” and “ ‘is incapable of any
exact or comprehensive definition.’ ” (City of San Diego v. U.S.
Gypsum Co. (1994) 30 Cal.App.4th 575, 585 (U.S. Gypsum).)
Thus, while nuisance is often defined broadly, many courts have
limited its scope in practice. (See id. at p. 586; Animal Legal,
supra, 533 P.3d at pp. 1172, 1175.) For example, the Washington
Supreme Court expressly limits nuisance claims “to property
infringement [and] threats to health and safety.” (Animal Legal,
at p. 1175.) Some of our fellow Courts of Appeal have prohibited
bringing products liability claims in the guise of public nuisance
actions. (U.S. Gypsum, at p. 586; City of Modesto Redevelopment
Agency v. Superior Court (2004) 119 Cal.App.4th 28, 39, 42–43;
but see People v. ConAgra Grocery Products Co. (2017) 17
Cal.App.5th 51, 91; County of Santa Clara v. Atlantic Richfield
Co. (2006) 137 Cal.App.4th 292, 309 (Atlantic Richfield).)
Such limits are often imposed because of a concern that
“nuisance ‘would [otherwise] become a monster that would
devour in one gulp the entire law of tort.’ ” (U.S. Gypsum, supra,
30 Cal.App.4th at p. 586.) In the products liability context, “ ‘[a]ll
a creative mind would need to do is construct a scenario
describing a known or perceived harm . . . that can somehow be
said to relate back to the way a company . . . makes, markets
and/or sells its non-defective, lawful product or service, and a
public nuisance claim would be conceived and born.’ ” (Lead
Industries, supra, 951 A.2d at p. 457.)
The trial court concluded Plaintiffs failed to adequately
plead public nuisance because the harms alleged to have befallen
14
individual student users of Defendants’ platforms did not amount
to a public nuisance, even when “considered collectively.” While
our analysis may differ from the trial court’s in some particulars,
we ultimately agree Plaintiffs’ efforts to state a cause of action for
public nuisance fail under the laws of California, Washington,
and Florida.7 (See pts. VII.–IX., post.)
II. San Diego Did Not State a California Negligence
Cause of Action
A. The Economic Loss Rule Bars San Diego’s
Negligence Cause of Action
Our Supreme Court has recognized that while a defendant
may have a general duty to guard against causing “actionable
physical, emotional or reputational injury to persons or physical
injury to property,” he typically “ha[s] no tort duty to guard
against purely economic losses.” (Gas Leak Cases, supra,
7 Cal.5th at p. 398; Sheen, supra, 12 Cal.5th at p. 920.) In
general, “there is no recovery in tort for negligently inflicted
‘purely economic losses,’ meaning financial harm unaccompanied
by physical or property damage.” (Sheen, at p. 922; see also Gas
Leak Cases, at p. 398 [“We use that term as a shorthand for
‘pecuniary or commercial loss that does not arise from actionable
physical, emotional or reputational injury to persons or physical
injury to property.’ ”].) Here, because San Diego failed to allege
cognizable physical or property damage, its negligence cause of
action fails.
7 At oral argument, West Warwick withdrew its Rhode
Island public nuisance cause of action.
15
B. No Exception to the Economic Loss Rule
Applies Here
San Diego argues the economic loss rule should not apply
“because the ‘considerations’ justifying [it]—preventing
indeterminate liability, disproportionate liability, and over-
deterrence—are ‘weak’ or ‘absent’ ” here. We disagree.
First, assuming without deciding that Gas Leak Cases’
references to the Restatement Third of Torts’ approach to
negligence claims apply equally to California law (see Gas Leak
Cases, supra, 7 Cal.5th at pp. 407–408), we find those
considerations present here. San Diego argues making an
exception to the economic loss rule for its claim would “not
threaten ‘indeterminate’ liability [citation] because its allegations
could only be made by a limited set of potential plaintiffs.” But
just as in Gas Leak Cases, we must consider not only the “limited
class” currently before us, but rather “the full universe of
potential claimants whose pocketbooks were adversely (and
foreseeably) affected by” Defendants’ platforms. (Id. at p. 410.) As
the trial court recognized, the universe of entities who may have
suffered (or will suffer) some sort of financial loss because of the
platforms is virtually unlimited, and could include “private and
parochial schools,” “[c]olleges,” “[e]mployers,” and “public health
services” that incurred increased expenses to treat alleged user
health problems. As with the proposed class of plaintiffs in Gas
Leak Cases, there is no viable geographic (spatial) or temporal
limitation on who could seek remedies for their economic losses.
(Id. at pp. 408–411.) In fact, the geographic and temporal scope is
much broader than in Gas Leak Cases.
Second, San Diego argues not creating an exception to the
rule here will insufficiently deter Defendants’ conduct. But our
16
Supreme Court rejected a similar concern in Gas Leak Cases
because the defendant still faced liability for many other claims
arising from property damage. (Gas Leak Cases, supra, 7 Cal.5th
at p. 413.) Likewise, Defendants may still face individual
personal injury lawsuits from their users, claims for statutory
violations, and actions in abatement from appropriate
government authorities. And given the severe consequences
alleged, “the Legislature can . . . craft a solution in tune with
public demands,” possibly through “further industry-specific
legislative or regulatory action.” (Ibid.)
Third, San Diego’s brief repeatedly attributes a degree of
intentionality to Defendants by arguing they “targeted schools
with their platforms” and committed “deliberate misconduct,”
citing cases holding the economic loss rule does not apply in the
context of intentional torts. (See, e.g., Rattagan v. Uber
Technologies, Inc. (2024) 17 Cal.5th 1, 38 [“the economic loss rule
does not apply to limit recovery for intentional tort claims like
fraud”].) San Diego contrasts Defendants’ purported intentional
acts against the random “ ‘man-made disaster’ ” at issue in Gas
Leak Cases.
But unlike the plaintiffs in In re JUUL Labs, Inc.,
Marketing, Sales Practices (N.D.Cal. 2020) 497 F.Supp.3d 552,
611–612 (In re JUUL), San Diego did not plead any intentional
torts in its operative complaint, and we are concerned here with
its cause of action for negligence. (See Fisher v. Fisher (2026) 118
Cal.App.5th 899, 917 [the “scope of liability is broader for
intentional torts than for negligence”].) Even assuming San Diego
is correct that Defendants’ knowledge of the effects of their
platforms on schools shows the harm was foreseeable, this branch
of the economic loss rule requires “more than mere foreseeability”
17
to impose liability for purely economic loss. (Gas Leak Cases,
supra, 7 Cal.5th at p. 401; see also id. at pp. 402–403.)
San Diego urges us to join a federal district court that
declined to apply the economic loss rule to a similar negligence
claim. (See In re Social Media Adolescent Addiction (N.D.Cal.
2024) 754 F.Supp.3d 946, 978–979 (In re Social Media).) But that
court focused largely on proximate cause and derivative injury
arguments that are not at issue here. (Id. at pp. 964–972.) Its
analysis of the economic loss rule was truncated, no doubt in part
due to the court’s observation that the parties’ briefing on the
topic was brief and provided “little more than case citations.” (Id.
at p. 978.) The court concluded neither of the two “ ‘recurring . . .
circumstances’ ” in which the rule applied “is argued or appears
to apply.” (Id. at pp. 978–979.) We do not find this analysis
persuasive and are bound instead to follow our Supreme Court’s
admonition that “liability in negligence for purely economic losses
. . . is ‘the exception, not the rule’ ” in California. (Gas Leak
Cases, supra, 7 Cal.5th at p. 400.)
III. West Warwick Did Not State a Rhode Island
Negligence Cause of Action
The Rhode Island Supreme Court has held “[t]he economic
loss doctrine provides that ‘a plaintiff is precluded from
recovering purely economic losses in a negligence cause of
action,’ ” and thus, “may not recover damages under a negligence
claim when the plaintiff has suffered no personal injury or
property damage.” (Franklin Grove, supra, 936 A.2d at p. 1275.)
The rationale provided—that “ ‘it is appropriate for sophisticated
commercial entities to utilize contract law to protect themselves
from economic damages’ ” (ibid.)—demonstrates that in Rhode
Island, cases discussing the economic loss rule are focused on the
18
“contractual economic loss rule” as we described in part I.B.2.,
ante. Nonetheless, in reaching its decision, the Franklin Grove
court cited approvingly a New Jersey case for the broader
proposition that “[g]enerally speaking, tort principles, such as
negligence, are better suited for resolving claims involving
unanticipated physical injury, particularly those arising out of an
accident.” (Id. at p. 1276, quoting Spring Motors Distributors v.
Ford Motor Co. (N.J. 1985) 489 A.2d 660, 672.)
Rhode Island has carved out an exception to the rule
whereby certain consumers are not foreclosed from seeking
economic damages in tort: “When a cause of action arises under a
contract and a consumer lacks privity of contract with the
offending party, an action in tort remains available, even if the
damages are purely economic.” (Rousseau v. K.N. Const., Inc.
(R.I. 1999) 727 A.2d 190, 193 (per curiam).) The court referenced
its long tradition of providing an opportunity for recovery in cases
in which consumers deal with commercial entities, such as
implied warranties of good workmanship and habitability. (Ibid.)
Because this case does not arise under a contract, there is no
need to address West Warwick’s argument that the consumer
exception applies here.
The question remains whether Rhode Island permits
recovery for economic losses under a negligence theory in any
other context. West Warwick points to no case outside of the
contractual context in which a plaintiff was permitted to sue for
purely economic injuries.
To the contrary, the Rhode Island Supreme Court has
expressed skepticism of expanding tort liability for economic
losses in unprecedented directions that is identical to the
concerns articulated by our Supreme Court in Gas Leak Cases.
19
For example, in Builders Specialty, the plaintiff company’s
employee was injured by the negligence of a defendant driver, an
employee of defendant company operating a vehicle on the
plaintiff’s property. (Builders Specialty, supra, 639 A.2d at p. 60.)
The plaintiff employer brought a negligence action to recover its
financial losses “in the form of pension contributions on [its
employee’s] behalf, increased workers’ compensation insurance
premiums, and other related costs.” (Ibid.)
The court refused “to extend the scope of tort liability to
include an employer’s business losses associated with bodily
injury to an employee,” because that “expansion could lead to
devastating results which could only be dimly perceived and
would be practically unlimited.” (Builders Specialty, supra, 639
A.2d at p. 60.) The financial losses sustained by the plaintiff
employer “were ‘beyond the scope of foreseeability, and . . . no
duty was owed by [the defendants].’ ” (Ibid.; see also John
Rocchio Corp. v. Pare Engineering (R.I. 2019) 201 A.3d 316, 321,
fn. 5, 322–323 [despite holding the contractual economic loss rule
does not apply given the absence of a contract, it would be
“absurd” to hold that “all engineers contracted by project owners
owe a duty to all general contractors that could possibly submit a
bid on any given request for proposal”].)
While the Rhode Island Supreme Court in Builders
Specialty did not label this an aspect of the “economic loss rule,”
it was motivated by the same concern about the practically
unlimited scope of financial harms that drove our Supreme
Court’s discussion of that rule in Gas Leak Cases.
We conclude Rhode Island does not allow recovery for the
purely economic losses alleged by West Warwick here. We are
reluctant to create a new cause of action in Rhode Island that has
20
not previously been recognized. (Flynn, supra, 177 A.3d at
p. 481.) Whether framed as a lack of duty or as another facet of
the economic loss rule, the result is that under Rhode Island law,
Defendants owed no duty to West Warwick to avoid the purely
economic losses it alleged.
IV. Brevard Did Not State a Florida Negligence Cause of
Action
In Florida, a duty exists when a defendant’s “activity . . .
created a general zone of foreseeable danger of a certain type of
harm to others.” (Williams, supra, 974 So.2d at p. 1056, fn. 2; see
also McCain, supra, 593 So.2d at p. 502.) Because we conclude
Defendants’ conduct did not create a foreseeable zone of risk of
any cognizable harm to Brevard, we affirm the trial court’s
dismissal of Brevard’s negligence cause of action.
A. The Same Principles Underlying the Economic
Loss Rule Apply in Florida
Florida also recognizes a “general principle of common law
negligence” that precludes “recovery for purely economic losses
when the plaintiff has sustained no bodily injury or property
damage.” (Curd, supra, 39 So.3d at p. 1223; see also Monroe,
supra, 746 S.2d at p. 531 [“we continue to hold, as a general rule,
that bodily injury or property damage is an essential element of a
cause of action in negligence”].) While the court in Curd did not
expressly use the phrase “economic loss rule,” it went on to
analyze whether the commercial fishermen plaintiffs before it
“f[e]ll into a recognized exception to that general rule.” (See Curd,
at p. 1224.) We conclude Brevard’s negligence cause of action was
correctly dismissed because no exception applies (see pt. IV.B.,
post).
21
1. The Contractual Economic Loss Rule Is
Irrelevant
In addition to the general principle discussed above,
Florida also has what it does call the economic loss rule, which is
essentially the contractual economic loss rule we have already
discussed, as well as an application of that same rule in the
products liability context. Brevard argues this doctrine, excluding
claims for “purely economic losses,” pertains only to
“ ‘ “disappointed economic expectations” ’ ” and does not apply
here.
Brevard draws its understanding from the Florida Supreme
Court’s discussion of the economic loss rule in the contexts of a
contractual relationship or products liability action. (See
Indemnity Ins. Co. v. American Aviation (Fla. 2004) 891 So.2d
532, 536–538 (Indemnity); Tiara Condo. Ass’n, Inc. v. Marsh &
McLennan Co. (Fla. 2013) 110 So.3d 399, 400.) But as noted
above, we are not applying the contractual economic loss rule
here, nor does this case arise in the product liability context. The
rule identified by Indemnity is conceptually distinct from the
more general tort law concern about amorphous and
indeterminate liability. (See Curd, supra, 39 So.3d at p. 1223
[distinguishing “the economic loss rule,” which did not apply,
from “general tort law principles” barring recovery for “ ‘purely
economic interests’ ”].)
Indemnity reiterated that cases not falling into the contract
or product liability contexts should still be decided on traditional
negligence principles of duty, breach, and proximate cause, and
the Supreme Court returned the case to the Eleventh Circuit,
noting only “[i]f [the defendant] owed [the plaintiff] a duty, then
[the plaintiff] is not prevented from recovering for purely
22
economic injuries.” (Indemnity, supra, 891 So.2d at pp. 543–544;
see also id. at pp. 544–546, conc. opn. of Cantero, J. [“[O]ur
limitation of the rule will not open the gates to widespread tort
recovery for purely economic losses. . . . [P]laintiffs whose cases
fall outside of the economic loss rule must still prove ‘duty,
breach, and proximate cause.’ . . . [¶] . . . [¶] . . . The ‘duty’ prong
remains a strong filter in these cases—virtually as strong as the
rule itself.”].)
B. Defendants Did Not Have a Duty to Prevent
Brevard’s Economic Harms
Both parties claim that the Florida Supreme Court’s
decision in Curd provides support for their position. In Curd,
plaintiff commercial fishermen sued a polluter whose wastewater
killed various marine life in Tampa Bay, damaging the
reputation of the fishery products and resulting in lost income.
(Curd, supra, 39 So.3d at pp. 1218–1219.) The court held that
while the (contractual and products liability) economic loss
doctrine as described above did not apply, the proper analysis,
consistent with its previous decision in Indemnity, was to
consider whether defendant owed the fishermen a duty