Wausau Tile, Inc., a Domestic Corporation, Plaintiff-Appellant v. County Concrete Corporation, a Domestic…

Summary

The Wisconsin Supreme Court held that Wausau Tile's negligence and strict liability claims against its cement supplier are barred by the economic loss doctrine because the complaint alleges only economic loss: repair and replacement costs for the defective pavers (integrated systems containing the cement as an integral component), the commercial costs of settling third parties' claims, and lost profits. Answering the certified question, the court held that Northridge does not create a broad public safety exception to the doctrine; that rule is confined to contamination by inherently hazardous substances such as asbestos and to suits by owners of damaged other property, and cannot rescue a purchaser claiming that a non-dangerous ingredient was of inferior quality. Because no covered bodily injury or property damage claims can be litigated, Travelers has no duty to defend Medusa on any of Wausau Tile's tort, contract, contribution or indemnification claims. The court affirmed the dismissal of the tort claims and the summary judgment for Travelers, leaving the breach of warranty and contract claims pending.