“Ten months after a Miami federal bankruptcy judge ruled that D.R. Horton engaged in deceptive practices that forced the bankruptcy of the homeowners association for Majorca Isles in Miami Gardens, the nation’s largest home builder is ending its appeal.”
The U.S. has recently seen a home building boom, with tens of thousands of new homes going up every year. The big national builders, including the biggest, D. R. Horton, promise high quality.
But ABC News found an industry also inundated with complaints, so much so that D. R. Horton told investors in its latest Securities and Exchange Commission filing that it has set aside some $400 million in each of the last two years to deal with hundreds of construction defect claims in its brand new homes. The company said in filings that this was the “ordinary course of business.”
D.R. Horton has reported to the U.S. Securities and Exchange Commission that they have put aside more than $400 million a year for the last two years to handle construction defect litigation.
For coastal residents, Hurricane Matthew was a devastating, even life-changing storm. For those living inland, it was more a mild inconvenience.
But for residents of one brand-new DR Horton community, the storm was a wake-up call about what a new home warrantee is really worth.
One HOA in The Conservatory neighborhood of Aurora was recently awarded $13.5 million in arbitration with D.R. Horton. The construction defect claim was for reconstruction of a groundwater underdrain system that has caused basement flooding in the past.
D.R. Horton had refused to repair the drainage system, leading to the HOA’s decision to file a lawsuit.