Waste Valve Leaks

Gunite pool, less than one year old, all Jandy equipment. The suction side of the plumbing has the Main Drain and the Skimmer pipes going through a Jandy Neverlube 3-way vavle and into the Filter Pump. From the Filter Pump, a pipe goes through another 3-way valve and into the Filter. The off shoot of that valve has a piece of pipe stubbed out with a waste hose connected to it. With the valve adjusted so that there is full flow between the Filter Pump and the Filter (the waste side is closed) a slow drip comes out of the stubbed out waste pipe. If I leave the waste hose connected to the pipe, the hose slowly takes on water. And since the hose is sort of rolled up, it can only take in so much water before it begins to expand under the pressure of the water.

Shouldn't those valves completely stop the flow of water when they positioned to do so? Do I have a faulty valve?

You certainly have some 'bypassing' going on with the valve:(

Without having to change out the valve, can you simply put a plug into the port where the backwash hose attaches? It's not a 'true' fix, but will work;)