Northridge Co. v. W. R. Grace & Co.

556 N.W.2d 345, 205 Wis. 2d 267, 1996 Wisc. App. LEXIS 1136
CourtCourt of Appeals of Wisconsin
DecidedSeptember 12, 1996
Docket95-1193, 95-2035
StatusPublished
Cited by14 cases

This text of 556 N.W.2d 345 (Northridge Co. v. W. R. Grace & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northridge Co. v. W. R. Grace & Co., 556 N.W.2d 345, 205 Wis. 2d 267, 1996 Wisc. App. LEXIS 1136 (Wis. Ct. App. 1996).

Opinions

SCHUDSON, J.

W. R. Grace & Company (Grace) appeals from the trial court's denial of its post-verdict motions for judgment or, in the alternative, for a new trial. Northridge Company, Southridge Company, their individual partners, and the Taubman Realty Group Limited Partnership (collectively, "Northridge") cross-appeal from the trial court's reduction of the verdict by twenty percent. Northridge also cross-appeals from the trial court's order denying photocopying costs, double costs, and pre-verdict interest.

[272]*272On the appeal, we affirm on all issues. On the cross-appeal, we reverse in part, concluding that the trial court erred in reducing the jury's award by twenty percent, and affirm on all other issues.

I. BACKGROUND

This is the second appeal stemming from Northridge's action against Grace. In the first appeal, on bypass from the trial court, the supreme court reversed the trial court's dismissal of Northridge's complaint. The supreme court summarized the factual background:

[Northridge] filed a complaint against [Grace], alleging breach of warranty and several tort claims based on the defendant's sale of Monokote,1 a fireproofing material, to the plaintiffs' general contractor2 for use in the construction of the plaintiffs' shopping centers. The complaint alleges that the Monokote was in a defective condition and, because it contains asbestos, presented unreasonable danger to persons and property. The plaintiffs assert that the asbestos contaminated the building and they suffered damages by incurring expenses for inspection, testing and removal of [273]*273Monokote and by a diminished value of the property.

Northridge Co. v. W.R. Grace & Co., 162 Wis. 2d 918, 922, 471 N.W.2d 179, 180 (1991). The supreme court rejected the trial court's determination that the alleged damages were "solely economic losses unrelated to any physical harm to property." Id. The supreme court concluded:

[TJhe complaint in this case can be interpreted as alleging that a defect in the product has caused physical harm to property, property other than the product itself. The alleged physical harm to other property consists of the contamination of the plaintiffs' building with asbestos from the defendant's product, posing a health hazard. Accordingly we conclude that the complaint states a tort claim for relief in strict products liability and negligence.

Id., 162 Wis. 2d at 923, 471 N.W.2d at 180. In a footnote, the supreme court also explained:

[Grace] argues that [Northridge's] claims in nuisance, deceit, strict liability for misrepresentation, and negligent misrepresentation are barred because [Northridge has] not suffered physical harm to property U/ Because we conclude that [Northridge has] alleged physical harm to property rather than solely economic loss, [Grace's] argument has no merit.

Id., 162 Wis. 2d at 938 n.15, 471 N.W.2d at 187 n.15. 3

[274]*274At the trial following remand from the supreme court, Northridge pursued its theories of strict liability, negligence, misrepresentation, and nuisance, and sought compensatory damages for: (1) the approximate $900,000 cost of removing some of the Monokote from the shopping malls prior to their sale in 1988; and (2) the $10 million discount given to the purchaser of the shopping malls to cover the remaining cost of abatement. Northridge also sought punitive damages.

At the conclusion of a five-week trial, the jury returned special verdicts finding that Monokote was not defective when it left Grace's possession so as to unreasonably endanger a prospective user or the user's property. The jury further found that although Grace made an untrue representation that Monokote was safe, Grace did not knowingly or recklessly make that misrepresentation. The jury found, however, that Grace was negligent and that Grace's negligence caused Northridge's injuries. The jury further found that Northridge was twenty percent contributorily negligent. The jury also found that Monokote did contaminate the shopping malls and create a health hazard to their occupants prior to April 4, 1988, the date the shopping malls were sold, and that on or before that date, Monokote constituted a nuisance or was reasonably certain to become a nuisance. The jury awarded Northridge $4,830,000 in compensatory damages.

Grace moved for judgment notwithstanding the verdict or for a change of answer or, in the alternative, for a new trial. Grace maintained that no credible evidence supported the verdicts and, alternatively, that the jury's findings were contrary to law and the [275]*275weight of the evidence. The trial court denied Grace's motions. The trial court then granted Grace's motion to reduce the judgment by twenty percent — from $4,830,000 to $3,864,000 — based on the application of the jury's contributory negligence finding to the nuisance verdict. The trial court denied Northridge's motions for double costs and photocopying costs. The judgment clerk perfected the judgment that, with the addition of taxable costs, totaled $4,010,667.62.

II. GRACE S APPEAL

Grace argues that: (1) no credible evidence established the existence of a health hazard prior to April 4,1988, the day on which the Northridge owners sold the shopping centers; (2) no credible evidence established that abatement of asbestos contamination was the basis for the $10 million discount to the purchaser of the shopping malls; (3) the jury's findings regarding both the health hazard and the $10 million discount were against the great weight and clear preponderance of the evidence; and (4) the cause of action for nuisance was insufficient as a matter of law because the shopping malls were not owned by or in possession of Grace.4

[276]*276A. The Sufficiency of the Evidence

"When there is any credible evidence to support a jury's verdict, 'even though it be contradicted and the contradictory evidence be stronger and more convincing, nevertheless the verdict. .. must stand.'" Weiss v. United Fire & Casualty Co., 197 Wis. 2d 365, 389-390, 541 N.W.2d 753, 761-762 (1995) (emphasis in original; citations omitted). "Only in the rare case, where the facts are undisputed and the required verdict is absolutely clear, should the trial court reverse the jury's conclusion." Macherey v. Home Ins. Co., 184 Wis. 2d 1, 8, 516 N.W.2d 434, 436 (Ct. App. 1994). In this case, the trial court correctly concluded that the evidence was sufficient.

Question 13 of the special verdict asked:

Did the Monokote-3 manufactured by the defendant, W.R. Grace & Co., contaminate the Northridge and Southridge Malls by releasing toxic substances into the environment and thereby causing damage to the malls and a health hazard to their occupants prior to April 4,19881

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Northridge Co. v. W. R. Grace & Co.
556 N.W.2d 345 (Court of Appeals of Wisconsin, 1996)

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Bluebook (online)
556 N.W.2d 345, 205 Wis. 2d 267, 1996 Wisc. App. LEXIS 1136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northridge-co-v-w-r-grace-co-wisctapp-1996.