Where the defendants failed to properly and timely litigate an issue in earlier proceedings, the issue is waived. The 7th U.S. Circuit Court of Appeals affirmed a decision by U.S. District Judge John W. Darrah. James and Michelle Gagnard built a house in Los Altos, Calif. In January 2004, the Gagnards sold the house to Susan Goldman. The house had several problems including bad plumbing that caused significant damage. The damage spawned litigation in multiple forums over the course of 10 years. The first action …