01-2689 The Bay Breeze Condomimium Association Inc. v. Norco Windows and JC Development Corp.

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“Although to date Wisconsin courts have not specifically addressed whether the integrated systems approach applies to building construction, other jurisdictions have addressed this precise issue. One case in particular, Casa Clara Condominium Ass’n, Inc. v. Charley Toppino and Sons, Inc., 620 So. 2d 1244 (Fla. 1993), provides guidance on this issue and was cited to by our supreme court in applying the integrated systems approach in Wausau Tile. …

“We adopt the reasoning of Casa Clara as the law in Wisconsin. We hold that the economic loss doctrine applies to building construction defects when, as here, the defective product is a component part of an integrated structure or finished product. The law of Casa Clara is consistent with Wisconsin precedent addressing component parts that cause damage to an integrated product, which results in only economic loss. …

“Here, as in Casa Clara, the homeowners purchased a finished product, their condominium units, the quality of which fell below expectations. While the Association argues that the defective windows caused damage to interior and exterior walls and casements, these are but other component parts in a finished product. Because of the integral relationship between the windows, the casements and the surrounding walls, the windows are simply a part of a single system or structure, having no function apart from the buildings for which they were manufactured.”

Judgment affirmed.

Recommended for publication in the official reports.

Dist II, Waukesha County, Hassin, J., Nettesheim, P.J.

Attorneys:

For Appellant: Steven J. Slawinski, Milwaukee

For Respondent: Kevin P. Whaley, Milwaukee