United Concrete & Construction, Inc. v. Red-D-Mix Concrete, Inc.

2013 WI 72, 833 N.W.2d 714, 349 Wis. 2d 587, 2013 Wisc. LEXIS 281
CourtWisconsin Supreme Court
DecidedJuly 12, 2013
Docket2011AP001566
StatusPublished
Cited by29 cases

This text of 2013 WI 72 (United Concrete & Construction, Inc. v. Red-D-Mix Concrete, Inc.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Concrete & Construction, Inc. v. Red-D-Mix Concrete, Inc., 2013 WI 72, 833 N.W.2d 714, 349 Wis. 2d 587, 2013 Wisc. LEXIS 281 (Wis. 2013).

Opinions

MICHAEL J. GABLEMAN, J.

¶ 1. There are many vagaries in the law. However, we deal here with the concrete. Specifically, certain batches of concrete that United Concrete and Construction, Inc. (United) purchased from Red-D-Mix Concrete, Inc. (Red-D-Mix) and now complains were defective. United used the concrete to pour outdoor installations (known in the industry as "flatwork") at various properties. After problems arose with the installations, United obtained assignments from a number of the property owners,1 who transferred their putative right to sue Red-D-Mix over to United. United then exercised that right, filing a complaint in tort and contract, in both its own name and in that of the assignees, and alleging violations of Wis. Stat. § 100.18 (2011-12).2 The circuit court3 granted summary judgment for Red-D-Mix, on the grounds that United's claims through the property owners and its tort claims were barred by the economic loss doctrine, its § 100.18 claim could not proceed because the allegedly actionable statements constituted puffery and because United was not a member of the public within the [593]*593meaning of the statute, and damages had been insufficiently established to support the remaining claims. Disagreeing entirely with the trial judge, the court of appeals reversed on all grounds.

¶ 2. As shown below, the court of appeals was in the main correct, but reached the wrong result in one respect and was overbroad or imprecise in others. To wit, the court of appeals properly reversed the circuit court's ruling regarding puffery, though it incorrectly determined that puffery is always a question of fact for the juiy. On the next issue, the court of appeals erred in its determination that the claims United asserted through the assignments were valid, when, with two exceptions,4 the economic loss doctrine barred the homeowners from suing Red-D-Mix and thus barred United from suing in their name. Finally, the court of appeals rightly reversed the circuit court for finding all the asserted damages speculative, though in doing so it prematurely interpreted the legal significance of the assignments. Its language construing the assignments is overruled. See Griebler v. Doughboy Recreational, Inc., 160 Wis. 2d 547, 556, 466 N.W.2d 897 (1991) (overruling specific language from the court of appeals decision under review).

¶ 3. When the case is returned to it, the circuit court is directed to dismiss the claims asserted through the assignments, and to allow the remaining claims to proceed to trial. Accordingly, we affirm in part, reverse in part, and remand with instructions.

I. FACTUAL BACKGROUND

¶ 4. Because this case is here on summary judgment, we recite the facts in the light most favorable to [594]*594United, the party opposing summary judgment, and accept as true its allegations.5 Kraemer Bros., Inc. v. U.S. Fire Ins. Co., 89 Wis. 2d 555, 567, 278 N.W.2d 857 (1979).

¶ 5. From 2002 to 2004, Red-D-Mix supplied United with concrete,6 which United then poured at various job sites. During that time, United complained to Red-D-Mix that its product was generating excessive "bleed water,"7 thereby damaging several of United's projects, including a number of basements. When the problem was not resolved to United's satisfaction, it severed its business relationship with Red-D-Mix.

¶ 6. In 2007, unhappy with price increases at its new supplier, M&M Concrete, United contacted Red-D-Mix to inquire into the possibility of restoring the relationship. John Clark, a salesman for Red-D-Mix who had not been with the company during the earlier difficulties with bleed water, came to United's offices at its request. There, he met with Timothy Hippert, the president of United, and Kevin Kluess, United's foreman. Hippert and Kluess sought assurances from Clark that the problems with the concrete had been resolved and that Red-D-Mix could now guarantee a high-quality, durable product. When Clark delivered those assurances, the two companies entered into a new contract.

[595]*595¶ 7. The good will was short lived. Customers soon began alerting United to defects in their outdoor concrete installations, such as pitting, discoloration, crumbling, and spalling.8 In response, United asked property owners to sign an assignment of rights. The assignment indicated that the signatory "desires to transfer any and all rights they [sic] may have arising from the supply of defective concrete for the purpose of prosecution and/or otherwise resolving the claims as seen fit by" United. It informed the reader that "the legal effect of signing this Assignment fully and forever extinguishes any and all claims which he/she has or might have had against any company for the supply of defective concrete for use in flatwork performed by a third-party as of the date of execution except as expressly reserved." The assignment then concluded, "Assignor conveys, assigns, transfers and sets over unto Assignee, all rights to any causes of action and/or claims of any nature, whether known or unknown, in any way relating to the outstanding claims that exist in his/her favor .. . ." Ultimately, 22 property owners acquiesced to United's request. Of these, 20 did so without any conditions. Of the other two, one, the Michaels, insisted on a reservation of rights in return. The other, the Beyers, sued United in small claims court and agreed to the assignment as part of a stipulated dismissal, in exchange for United promising to either repair the damaged concrete or pay for its replacement.

II. PROCEDURAL HISTORY

¶ 8. Its assignments in hand, United brought suit in its own name and through the assignments against [596]*596Red-D-Mix in Outagamie County Circuit Court, demanding damages, in its third and final amended complaint, for breach of contract, breach of express warranty, breach of implied warranty, false representations under Wis. Stat. § 100.18, negligence, indemnification, and contribution.9 Red-D-Mix moved for summary judgment, arguing that damages were speculative because United had not yet performed any repairs. The motion further argued that the negligence claims were barred under the economic loss doctrine, as no harm befell any individuals or property other than the concrete itself, aside from two minor incidents involving grass growing in a driveway and abnormal wear and tear on a floor. With respect to the assigned claims as a whole, Red-D-Mix contended that they should all be dismissed because, under our decision in Linden v. Cascade Stone Co., Inc., 2005 WI 113, 283 Wis. 2d 606, 699 N.W.2d 189, the owners could sue only United, not Red-D-Mix, and they therefore had nothing to assign. Lastly, Red-D-Mix submitted, in its motion for summary judgment, that United's Wis. Stat. § 100.18

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Bluebook (online)
2013 WI 72, 833 N.W.2d 714, 349 Wis. 2d 587, 2013 Wisc. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-concrete-construction-inc-v-red-d-mix-concrete-inc-wis-2013.