Maricopa County v. Walsh & Oberg Architects, Inc.
Arizona Court of Appeals
494 P.2d 44 (1972)
W&O's (defendant) design flaw caused a concrete slab over an underground parking garage (designed by W&O for Maricopa County, plaintiff) to crack and leak; the trial court found waterproofing the slab (mostly by removing and replacing landscaping atop it) would cost $350,000–$500,000, while an alternative remedy — installing gutters to catch leaks and fixing damaged wiring, plus compensating garage patrons for future leak-related damage — would cost only about $100,000. Evidence suggested Maricopa wouldn't actually waterproof the slab even if awarded the larger amount, and the trial court awarded the $100,000 alternative-remedy figure; Maricopa appealed seeking the higher waterproofing cost.
Whether the economic-waste doctrine prevents an injured contract party from receiving expectation damages if those damages greatly exceed the loss in value caused by the breach.