Supreme Court Approves "Stigma" Damages in Defect Case
At the end of its recent decision involving discovery sanctions against the maker of an EIFS product, the Supreme Court announced a significant damages ruling: in a defect case, where the damage to property is "permanent" in nature, the plaintiff will be entitled to both the cost of repair and dimunition in property value. Said the Court by a 9-0 vote:
(5) Damages for Diminished Value. Sto argued that the trial court erred in awarding the Mayers "stigma damages," damages for the home's diminished value. However, where the damage to real property is permanent, a plaintiff is entitled to recover, not only for the costs of restoration and repair, but also for the property's diminished value. See Pugel v. Monheimer, 83 Wn. App. 688, 692, 922 P.2d 1377 (1996) (determining that withdrawal of building's lateral support permanently damaged marketability); see also Grant v. Leith, 67 Wn.2d 234, 237, 407 P.2d 157 (1965) (sustaining an award for restoration and permanent depreciation). The Court of Appeals noted that "{t}he Mayers presented unrebutted expert testimony that in addition to the repairs, they had suffered a permanent loss because they will have to disclose that the home is sided with EIFS, a known defective product." 123 Wn. App. at 464. We affirm the Court of Appeals on the trial court's award of stigma damages.
