Court Finds ‘Carrying Costs’ Damages Sought by Calif. Remodeler Unsupported by Law

LOS ANGELES — A California appellate panel has reversed consequential damages awarded to a remodeler as reimbursement for carrying costs of allegedly defective U.S. Gypsum Co. products, saying the award lacked a basis in law.

The Second Appellate District’s unpublished Oct. 28 order remanded the case brought by Irena Inc. against U.S. Gypsum for further consideration of damages, which shall be the lesser of diminished value or cost of repair and investigation.

Irena, a real estate developer, purchased an existing, 3,500-foot residential property in 2006 for $1.7 million, planning to partially demolish it and remodel. The company obtained a $2.1 …