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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Real Estate Marketing, Inc. v. Franz, 885 S.W.2d 921 (1994)

Citation
Real Estate Marketing, Inc. v. Franz, 885 S.W.2d 921 (1994)
Parent Document
Real Estate Marketing, Inc. v. Franz, 885 S.W.2d 921 (1994)
Jurisdiction
Kentucky (state)
Effective Date
1994-10-27

Other Sections in This Document (62)

Full Text

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Having concluded that the builder’s legal obligation here is not a matter of contract, and that there is no warranty implied in law in Kentucky to the builder/seller beyond the initial purchaser, we next address liability based on negligence or negligence per se. In Saylor v. Hall, Ky., 497 S.W.2d 218 (1973), we recognize a legal obligation to respond in damages for negligent construction despite the absence of privity. The ease involved two children of tenants, one injured and one killed, crushed by a fireplace and mantle that collapsed due to defective construction. The argument made in the present case, as recited in the Court of Appeals’ Opinion, is that “it seems capricious to deny recovery to a vigilant property owner who discovers a latent defect, which ‘only diminishes the value of his property, and allow recovery if he had ‘waited’ for a member of his family to be injured as a result of the defect.” Nevertheless, this Court recognizes that tort recovery is contingent upon damage from a destructive occurrence as contrasted with economic loss related solely to diminution in value, even though, as to property damage, both may be measured by the cost of repair. See Dealers Transport Company, Inc. v. Battery Distributing Company, Ky., 402 S.W.2d 441 (1966), adopting Section 402A of the Restatement (Second) of Torts in defective products cases.