Section 18.36 Cost-of-Repair Rule Favored in Defective Construction Cases

• Library: Tort Law 2016

b. (§18.36) Cost-of-Repair Rule Favored in Defective Construction Cases

In real property cases, courts generally use the diminution-in-value test, and only use the cost-of-repair test when the amount is less. But in Business Men’s Assurance Co. of America v. Graham, 891 S.W.2d 438, 449–50 (Mo. App. W.D. 1994), aff’d after remand, 984 S.W.2d 501 (Mo. banc 1999), the court held that defective construction cases are different. In those cases, cost of repair is preferred, except when the cost of...