   In Utah International, Inc. v. Caterpillar Tractor Co., 108
N.M. 539, 775 P.2d 741 (Ct. App. 1989), the New Mexico Court of
Appeals adopted, for the first time, the economic loss rule in
New Mexico. The defendant designed, manufactured and sold a coal
hauler to plaintiff that caught on fire, damaging the hauler
only. Plaintiffs brought an action for negligence and strict
liability, and sought purely economic damages for replacement of
the hauler and loss of use. The Court held:  In commercial
transactions, when there is no great disparity in bargaining
power of the parties, economic losses from injury of a product
to itself are not recoverable in tort actions; damages for such
economic losses in commercial settings in New Mexico may only be
recovered in contract actions. We so hold in order to allow
commercial parties to freely contract and allocate the risk of
defective products as they wish. The buyer may bargain for
additional warranties from the seller and pay a higher price, or
may forego warranty pro