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Court rules contractor not responsible for water park moisture damage

A Wisconsin Dells resort cannot sue a Madison-based contractor for moisture damages resulting from a water park project built more than 10 years ago, according to a Court of Appeals ruling Thursday.

Kalahari Development LLC cannot sue Iconica Inc. and its insurer, Lexington Insurance Co., for breach of contract and professional negligence as a result of a water park resort and conference center completed May 4, 2000, according to court records.

On May 11, 1999, Kalahari hired Iconica to design and construct the company’s resort — which included a water park, hotel and restaurant — for $26.2 million, according to court records. Iconica was also to provide architectural, engineering and other construction services.

Kalahari employees first began noticing surface stains on the water park building’s wall and later water damage inside the walls beginning in May 2008, according to court documents. The company filed a lawsuit on April 23, 2010, nearly 10 years after the project was complete, alleging Iconica, “defectively designed and/or defectively installed the vapor barriers in the walls,” causing the moisture damage, according to court records.

But the Appellate Court, affirming a previous circuit court’s ruling, dismissed both claims, concluding the contract claims were beyond the six-year statute of limitations, according to court records.

The amount of money Kalahari was seeking from Iconica and its insurer was not provided in the court’s opinion released Thursday.


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