What if you build a house for a client… and that home’s foundation moves, say, an entire foot. Would you fix it if it were within the warranty period? It seems like that’s one of things you have to gamble with when working in California. Well, we don’t know the specifics, but plaintiffs, Neal and Kerie Turner, purchased their home in 2005, which, according to the suit, it began showing signs of movement and damage shortly after they moved into the home. A warranty claim was made with the builder, Phipps & Company Homes, but the builder refused to repair the damage. According to the suit, the plaintiffs pleaded for more than a year to have the problems addressed. Evidence proved the foundation had moved close to one foot and required extensive repairs.
Builder Ordered to Pay
A Texas jury has awarded over $800,000 to the homeowners. The jury found that the builder was indeed responsible and that it had violated the warranty to the plaintiffs and, apparently, the Texas Deceptive Trade Practices Act. Phipps & Company Homes was ordered to pay $812,000 for damages related to repairing the home and the reduction in market value (plus, of course, attorneys’ fees). According to the report we read, the total judgment could exceed $1 million dollars.
So, as a builder, what are your experiences with client issues and warranty claims? If your insurance doesn’t cover foundation shifts, does your warranty? And what is the role of a responsible builder? In this case, it seems like the builder would have been better off solving the issue before it went to court. Though we don’t know all of the details, it’s always interesting to evaluate cases where our eyes are opened to yet another area of potential concern for builders.
Let us know in our discussion forums what kinds of issues you’ve run into and what your views are on builder warranties.
