From the State Bar of Wisconsin – Application of economic waste rule does not require evidence of diminished value

Saw this on my Google alerts…interesting take on “Construction Defects”

By Joe Forward, Legal Writer, State Bar of Wisconsin

The economic waste doctrine will prevent a party from obtaining a windfall for construction defects. But an appeals court recently clarified that evidence of a property’s diminished value as a result of the defect is not necessary in the damages equation.

Dec. 30, 2010 – In determining whether a defendant must fully replace a construction defect or simply repair it, application of the economic waste rule does not require the defendant to present evidence of the property’s diminished value.
Champion Companies of Wisconsin Inc. sold bricks to Stafford Development LLC, which Ricky Zanow owned. Glen-Gery Corp. manufactured the bricks. Stafford Development used the bricks to build Zanow’s home. Turns out, the bricks had cosmetic defects.
Zanow sued Glen-Gery seeking $344,000 in damages to replace every brick. Glen-Gery argued that repairing the bricks was the proper remedy, and repairs would cost less than $7,500. Neither party offered credible evidence as to the diminished value of the property.


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