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$4 million awarded in Del Webb defect case

What trial attorneys once billed as the largest construction-defect lawsuit in Nevada's history posted less-impressive results after a jury delivered its verdict Wednesday.

A $70 million case filed against Del Webb Communities in 2003 yielded just $4 million in damages, with a jury in Clark County District Court deciding that only 70 of nearly 1,000 homeowners named in the lawsuit merited compensation.


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  • When Wolf Rifkin Shapiro Schulman & Rabkin filed the case five years ago, the lawsuit involved more than 1,400 homes in Sun City Summerlin. The plaintiffs alleged that Del Webb failed to install metal screeds that would protect homes from water damage, and that cracked stucco, mold and weakened walls resulted. Plaintiffs' attorneys said each home would require $50,000 in repairs; they also sought class action status involving all 7,800 homes in Sun City Summerlin, a move that could have led to damages of "several hundred million dollars," they said.

    But they didn't win class action status. So nearly 1,000 homeowners sued individually, and most of them received no damages.

    Plaintiffs' attorneys didn't return calls Thursday seeking comment.

    Pulte Homes, which bought Del Webb in 2001, released a statement Thursday saying the small number of homeowners benefiting from the verdict "confirms that there were few issues with the homes and illustrates the unfortunate risk homeowners sometimes take in responding to solicitations from trial lawyers instead of working with their home builder."

    Still, the company believes damages should have been even smaller.

    "We disagree with the conclusion that there are issues with even the small number of homes listed in the verdict," said Michael Laramie, associate general counsel for Michigan-based Pulte. "We had virtually no complaints of stucco issues in the community prior to this lawsuit being filed."

    The verdict came down on the same day that consumer-research company J.D. Power & Associates gave Pulte top honors for customer satisfaction in 11 markets nationwide. In Las Vegas, Pulte ranked No. 3 in overall buyer satisfaction.

    Pulte, along with other area builders, remains embroiled in another construction-defect lawsuit involving plumbing inside as many as 50,000 homes across Las Vegas. The lawsuit alleges that Kitec pipe fittings fail when exposed to water.

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

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    RRjackson wrote on September 15, 2008 11:41 AM: that builder statement:
    "confirms that there were few issues with the homes and illustrates the unfortunate risk homeowners sometimes take in responding to solicitations from trial lawyers instead of working with their home builder." is misleading.

    I tried working with my builder and they told me to just try and sue them, because they wouldn't do anything to help otherwise. That is far more common, because I couldn't sue, as it turned out.

    Having such a large project riddled with sporadic defects, even with that settlement, was still cost effective for the builder's bottom line.

    The ruling just tells the builder go on and half azz build houses when they feel like it, IMO.

    But sure, this was better than most outcomes for defective home victims. The plaintiff's attorney likely couldn't reply as a result of the gag order the builder typically forces into the settlement agreement.

    That let the builder put only their spin on the matter, which was misleading. Had these people not joined forces with an attorney, even as individuals, and instead worked with the builder, likely nothing would have been resolved at all.

    Chances are they already had worked with the builder, and that's why they went to a lawyer.


    SES wrote on September 15, 2008 05:56 AM: 'working with the builder' is not as easy as it looks in words. Homeowners strive to work out issues but the builder balks, procrastinates and demeans the homeowner. It must be in the homebuilder's book of play that builders will state the homeowner won't let them in, won't let them do the repairs. Unfortunately this is a game that is played by builders. They try to cloud the issue. If they talk about everything else not germane, the main issue gets lost. The loser is the homeowner. The homeowner just wants to live in a house that was guaranteed by the sales agreement that it was defect free upon closing - and it wasn't. Even though this wasn't a large settlement (by tort standards), it is a start AND it is proof of shoddy construction. The courts are finally putting the hammer down on builders who are biting the hand that feeds them. The 4 to 5 class action suits pending will pay attention to this verdict and act accordingly.

    If someone lives in this builder's house and it is perfect, that is wonderful. However, those that live in a house that was built using shoddy construction methods can't say the same. One must stand in their shoes to understand. Would YOU want to live in a house that is falling down around you? I doubt it.

    http://justanotherlemon.com/CCFL/pulte.htm

    http://camplemonadestand.com

    http://HADD.com

    http://HOBB.org


    Cindy wrote on September 12, 2008 01:57 PM: Nearly every builder claims the homeowner didn't try to work with them about defects before suing, but I am with a consumer org and we see this as a common EXCUSE. Most homeowners try for weeks, months, even sometimes years, to get a builder to fix defects. The mistake many homeowners make is in not documenting those attempts. If there is no proof, builders can claim they were never notified or were not given a chance to repair. Whole laws have been passed based on this ridiculous and often false claim, laws that help builders and hurt homeowners. Also, lawyers who try to get homeowners with the same construction/builder into one effort to hold a builder accountable are not necessarily predators. A case like this is a lot of work. Doing only an individual case here and there is not profitable to law firms, so they often reject individual cases. Banding together, (class action or not), makes it more efficient, and makes it more POSSIBLE for the homeowners to even get a lawyer and pursue a case. So many builder contracts and warranty policies prevent buyers from suing at all, due to mandatory binding arbitration clauses that favor the builder/warranty co, that the few lawsuits are the tip of the iceberg. Construction defects are common and shortcuts become almost industry wide because it's so hard for the individual to get compensation. Don't be so quick to assume these homeowners were sue-happy or trying to profit either. I bet most lost money, even the ones that "won." In some states you can't even recover legal fees in a civil case. Reality is far from tort reform propaganda, folks.