United Concrete & Construction, Inc. v. Red-D-Mix Concrete, Inc.
836 N.W.2d 807
Wis.2013Background
- From 2002 to 2004, Red-D-Mix supplied concrete to United, which later claimed bleed water issues damaged multiple outdoor installations.
- In 2007, United, seeking to renew the relationship, met Red-D-Mix’s salesman Clark, who assured improved quality, leading to a new contract.
- After new defects surfaced, United obtained assignments from 22 property owners transferring their potential claims to United, with two volitional exceptions.
- United filed suit in its own name and through the assignments asserting contract, express and implied warranties, Wis. Stat. § 100.18, negligence, indemnification, and contribution.
- The circuit court granted summary judgment for Red-D-Mix; the court of appeals reversed on several grounds; the Wisconsin Supreme Court granted review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Clark's statements were puffery under § 100.18 | United contends the statements were factual assurances, not mere puffery. | Red-D-Mix argues the statements were puffery and non-actionable. | Statements are not puffery; not a matter of law to dismiss at summary judgment. |
| Whether United’s assignment-based claims are barred by Linden and the economic loss doctrine | United argues assignments from homeowners permit suit in United’s name. | Red-D-Mix contends Linden bars homeowners’ claims and thus United’s assignments fail. | Linden bars United’s claims through the homeowners’ assignments; those claims must be dismissed. |
| Whether damages on assigned claims are sufficiently definite to survive summary judgment | Damages on the assigned claims are not speculative and may be proven at trial. | Damages are too speculative to proceed on summary judgment. | Damages through the assignments were not inherently speculative; however, the assignments are barred, so this argument is addressed in the remaining live claims. |
| Whether United’s own-name claims survive summary judgment | United asserts breach of contract, express/implied warranties, and related theories with concrete damages. | The circuit court dismissed these as speculative or barred by the economic loss doctrine. | United’s claims in its own name survive summary judgment in part; damages are suitably pled and may proceed to trial. |
Key Cases Cited
- Linden v. Cascade Stone Co., Inc., 283 Wis. 2d 606 (Wis. 2005) (economic loss doctrine bars tort claims for purely economic loss against subcontractors)
- Am. TV & Appliance of Madison, Inc. v. Haraldson, 146 Wis. 2d 292 (Wis. 1988) (puffery generally not actionable; expressions of opinion are not facts)
- Tietsworth v. Harley-Davidson, Inc., 270 Wis. 2d 146 (Wis. 2004) (puffery as opinion; some statements cannot be substantiated)
- Kraemer Bros., Inc. v. U.S. Fire Ins. Co., 89 Wis. 2d 555 (Wis. 1979) (summary judgment standard and burden shifting)
- Grams v. Boss, 97 Wis. 2d 332 (Wis. 1980) (summary judgment standard and evidence considerations)
- Lambert v. Hein, 218 Wis. 2d 712 (Wis. Ct. App. 1998) (puffery in context; contextual approach to claims)
