State Supreme Court ruling affects home sales

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Home sellers who lie to prospective buyers will no longer pay big punitive damages when losing civil suits.

The Wisconsin Supreme Court voted 4-3 Tuesday to prevent ripped-off home buyers from suing for fraud.

They can still sue for false advertising and breach of contract.

Steve Melli of the University of Wisconsin-Madison Law School says juries can no longer award punitive damages. He says it’s one less deterrent for unscrupulous home sellers.

Debbie Conrad of the Wisconsin Realtors Association says it creates more of a buyer-beware climate. The four justices in the majority said real estate should be included under Wisconsin’s economic loss doctrine which prevents civil claims for losses resulting from products.

Justice Ann Walsh Bradley said the ruling lets sellers lie about a home’s condition and escape legal consequences. She said Wisconsin is now the only state barring civil fraud cases for real estate.

The case involved a Milwaukee home sale in 2004. The affected attorneys all said the ruling still allows ripped-off home buyers to seek legal remedies but only for the wrongs that are actually committed.

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