Sometimes, it is not a good thing when Wisconsin sets precedent.
Such is the case in the state Supreme Court's ruling last week that prevents home buyers in Wisconsin from suing for fraud when they believe a seller has lied to them. Now, truly, in the housing market it's "buyer beware."
In a 4-3 decision, the state's highest court expanded Wisconsin's economic loss doctrine, which is designed to bar civil claims for economic losses in cases involving a contract for a product. The doctrine previously had been applied to commercial real estate sales. Now it also applies to residential sales.
The major difference is that businesses in commercial real estate transactions often have far greater resources to inspect the property before a sale. The private citizen looking to buy a home usually doesn't have the same luxury, and often is forced to take the home seller at their word.
The court's ruling makes it easier for that word to mean nothing.
The justices ruling in the majority - Annette Ziegler, Patrick Crooks, David Prosser and Pat Roggensack - said home buyers still have legal recourse through lawsuits alleging breach of contract and false advertising. But those types of lawsuits carry tighter time restrictions and make it harder to collect penalties.
Which is why the Wisconsin Realtors Association opposed the eliminating of fraud, filing a friend of the court brief in the case. It called the court's eventual ruling "bad for the Wisconsin real estate market and bad for Wisconsin consumers."
Sen. Jon Erpenbach, D-Waunakee, in a guest commentary in the Times, says he is certain that the Legislature will address the state statute in the coming session "and decide how to create a real law that is fair and just for buyers and sellers."
Lawmakers need to right the court's wrong. Wisconsin is now the only state in the nation that bars civil action in fraudulent real estate transactions. It is the only state that creates the possibility that sellers can dupe home buyers and not pay a legal price. It is a precedent that could be disastrous nationally if other states follow suit.
The state's highest court's decision in this case is incredible. It must be undone by lawmakers.
Such is the case in the state Supreme Court's ruling last week that prevents home buyers in Wisconsin from suing for fraud when they believe a seller has lied to them. Now, truly, in the housing market it's "buyer beware."
In a 4-3 decision, the state's highest court expanded Wisconsin's economic loss doctrine, which is designed to bar civil claims for economic losses in cases involving a contract for a product. The doctrine previously had been applied to commercial real estate sales. Now it also applies to residential sales.
The major difference is that businesses in commercial real estate transactions often have far greater resources to inspect the property before a sale. The private citizen looking to buy a home usually doesn't have the same luxury, and often is forced to take the home seller at their word.
The court's ruling makes it easier for that word to mean nothing.
The justices ruling in the majority - Annette Ziegler, Patrick Crooks, David Prosser and Pat Roggensack - said home buyers still have legal recourse through lawsuits alleging breach of contract and false advertising. But those types of lawsuits carry tighter time restrictions and make it harder to collect penalties.
Which is why the Wisconsin Realtors Association opposed the eliminating of fraud, filing a friend of the court brief in the case. It called the court's eventual ruling "bad for the Wisconsin real estate market and bad for Wisconsin consumers."
Sen. Jon Erpenbach, D-Waunakee, in a guest commentary in the Times, says he is certain that the Legislature will address the state statute in the coming session "and decide how to create a real law that is fair and just for buyers and sellers."
Lawmakers need to right the court's wrong. Wisconsin is now the only state in the nation that bars civil action in fraudulent real estate transactions. It is the only state that creates the possibility that sellers can dupe home buyers and not pay a legal price. It is a precedent that could be disastrous nationally if other states follow suit.
The state's highest court's decision in this case is incredible. It must be undone by lawmakers.
