What if you build a house for a clientโฆ and that homeโs foundation moves, say, an entire foot. Would you fix it if it were within the warranty period? It seems like thatโs one of things you have to gamble with when working in California. Well, we donโt know the specifics, but plaintiffs, Neal and Kerie Turner, purchased their home in 2005, which,ย according to the suit, it began showing signs of movement and damageย shortly after they moved into the home.
A warranty claim was made withย the builder, Phipps & Company Homes, but the builder refused toย repair the damage. According to the suit, the plaintiffs pleaded forย more than a year to have the problems addressed. Evidence proved theย 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.ย 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, attorneysโ 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 doesnโt 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 donโt know all of the details, itโs 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 youโve run into and what your views are on builder warranties.
