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Precision Hydraulic Cylinders, Inc. (Precision) issued a series of purchase orders to Manufacturing Technology, Inc. (MTI) to weld steel components together to create hydraulic cylinders. MTI agreed to develop welds for Precision’s small and large cylinders under two separate purchase orders.
The district court dismissed Precision’s negligence and negligent misrepresentation claims pursuant to the economic loss doctrine because they were not “independent, identifiable, and distinct” from Precision’s breach of contract claims. The conduct on which they were based, MTI’s provision of failed welds, was the same. And the duty Precision alleged was owed, to exercise reasonable care in developing the welds, was the same.