Favorable Results in Binding Arbitration Case for D.R. Horton Homeowners and SB 800 LawWe Focus on Construction Defect Litigation on a Contingency Fee Basis

We have just completed two binding arbitrations as required by the D. R. Horton Sales Agreement for a 5-home case and for a 26-home case. These homes are located in Imperial County down by the Mexican border and they suffered from defects including soil movement, windows, improper attachment of roofs, drywall cracking and problems with the heating and air conditioning systems.

In the five-home case we obtained a binding arbitration award of approximately $150,000.00, primarily because of the soil movement issues which affected these homes. In the 26-home case we obtained a binding arbitration award of approximately $260,000.00, approximately $10,000.00 per house, and both cases involved extensive analysis of the California SB 800 Law.

Although only coming into prominent use recently, the SB 800 Law is in fact ten years old this year and it sets standards for construction for new residential units and procedures for trying to resolve construction defect claims without litigation. Developers have generally been using the SB 800 Law not to resolve cases but to delay resolution of cases. We are now in a new boom cycle of construction of homes and it will be interesting to see if construction standards are higher and if developers act in good faith to use SB 800 to resolve construction defect lawsuits.

Personally, I do not believe that most developers are going to act in good faith. However, I think they have been sued now for over a quarter of a century and that building standards will have improved at least slightly. In any case, every new home sales contract will have a reference to SB 800 and to binding arbitration of disputes. New home buyers should insist on seeing all of the documents they will be asked to sign at least a week or two in advance of the closing date and escrow so that they have a chance to review them and/or take them to a real estate attorney to fully understand the rights that they are signing away when they sit in the office with the escrow agent. Generally, developers will refuse to give you those documents which could be a warning sign about the condition of the new house that you have fallen in love with.

Call us now at (916) 569-1940 to speak with a Sacramento construction defect lawyer at a no-cost consultation. Let us help you protect your home!

We Focus on Construction Defect Litigation on a Contingency Fee Basis