Lawsuit Filed by Owner of Defective NVR Home Dismissed Because of Warranty Deadline
Lawsuit Filed by Owner of Defective NVR Home Dismissed Because of Warranty Deadline
Home buyers sometimes discover that new construction hasn’t delivered on all of its promises. As one homeowner learned, however, there may not be much time to complain. In a recent case, a homeowner’s claims against her builder were barred by a one-year warranty in her agreement of sale.
Tamara Daniels had a series of problems with her new home, built by NVR Inc. Much of the construction was not completed in a “good and workmanlike fashion,” there was mold infiltration, and it didn’t meet building code requirements or promised levels of energy efficiency.
NVR’s Limited Warranty promised that the “basic home would be free from defects in materials and workmanship for one year, and that plumbing, electrical, and HVAC systems would be defect-free for two years.
Daniels claims she reported all the defects to the builder within the warranty periods. She and the builder also signed an Agreement Tolling Statute of Limitations, which “tolled” or postponed the statute of limitations on any lawsuit she might choose to bring. She says they never made the needed repairs during her negotiations, with the result that her house and furnishings continued to suffer damage, forcing her to pay for a wide range of repairs.
Her nine-count lawsuit alleged breach of contract, breach of express and implied warranties; negligence; negligent and intentional misrepresentation; concealment or nondisclosure; and unfair trade practices. She sought $75,000 in damages, plus “rescission” or cancellation of the contract of sale.
In its response, NVR pointed out that she purchased her home on August 12, 2011 and that her complaint was time-barred by the one-year warranty period in her purchase agreement. As for the “Tolling Agreement,” it extended the statute of limitations but not the warranty and was irrelevant. Because her complaint involved issues covered by warranty, it had missed the contractual deadline.
The court found it troubling that the builder agreed to extend the statute of limitations without extending the warranty. Still, it concluded that the case law was on the builder’s side. In addition, while the plaintiff claimed that a one-year warranty was unreasonable, the court noted that the purchase agreement specifically said that it was reasonable. Because she agreed to the one-year warranty in a voluntary bargain, the courts upheld it and dismissed her case.
Disputes over real estate and construction defects can be complex and require litigation counsel with extensive experience. Because courts often favor the terms of a contract over what might otherwise seem just or fair, it is crucial that buyers have experienced representation when signing a real estate agreement and when litigating over it afterwards. The Bethesda and Rockville, Maryland real estate litigation attorneys at Longman & Van Grack have represented buyers, builders, and real estate industry professionals in trials involving all types of legal disputes. Contact us today at (301) 291-5027 for a consultation.
