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February 13, 2008

Homeowners can sue builders over defects

As Reported in The Des Moines REGISTER  • February 1, 2008

The Iowa Supreme Court ruled on Friday ruled that homeowners can sue contractors for problems discovered long after a home is sold if the defects can be traced to original workmanship.

The ruling involves the 7-year-old case of a Clive couple who discovered water damage and mold in their 12-year-old home, which had been custom built for another couple in 1995.

Today’s ruling reverses an earlier court decision that shielded the contractor, Walters Development Co., from responsibility for problems after the home changed hands.

“We believe that Iowa law should follow the modern trend allowing a subsequent purchaser to recover against a builder for a breach of the implied warranty of workmanlike construction,” the high court said.

The Clive couple, Robert And Beverly Speight, could not be immediately reached for reaction.

Their attorney, Harley Erbe, called the ruling “a great victory for consumers, because the fact that many people nowadays are buying homes that were built for somebody else, as opposed to having homes that were custom built.”

Prior to today’s court decision, people like the Speights would have been “shut out if the home had any potential construction issues,” Erbe said.

Erbe said the Speights will continue the lawsuit against the developer, who allegedly used defective gutters and a put a subpar roof on the house at 1985 N.W. 149th St., which the Speights purchased in July 2000 for $250,750. According to the lawsuit, water has leaked into the house and down the walls.

The Speights still live in the house. Erbe declined to say when the leaks were discovered or whether they turned up in a pre-purchase inspection. He said it was a “strategic decision” to sue Walters instead of the couple they bought the house from, Philip and Nancy Rogers.

Walter Development officials could not be immediately reached for comment.

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