Lawsuit against D.R. Horton could expand to class action

A Louisiana lawsuit against D.R. Horton, the nation’s largest homebuilder, could be expanded to a class-action after a series of rulings this month, The Advocate of Baton Rouge reported.

A Youngsville, Louisiana, family sued the homebuilder in state court claiming a home built by the Texas-based company was defectively designed and constructed, leading to mold, humidity and HVAC issues.

The family’s lawyers — claiming hundreds of homeowners in the state and nationwide have also been harmed by D.R. Horton’s alleged deceptive sales practices — have filed a motion to expand their suit to class-action status for additional plaintiffs to join in their case. The class could reach up to 1,000 plaintiffs, the outlet reported.

D.R. Horton’s attorneys say the matter belongs in arbitration and have sought to remove the to federal court to argue that position, a maneuver the plaintiff’s lawyers say is a stalling tactic.

“D.R. Horton is again trying to delay and conceal the truth about what it is telling prospective homeowners to try and sell houses,” Lance Unglesby, the family’s lead attorney, said in a statement to The Advocate. “D.R. Horton has a history of failing to disclose material information to prospective buyers and using unethical sales tactics. Our clients have told us that D.R. Horton never warned them about humidity issues in their home designs, even after D.R. Horton received complaints.”

A Louisiana judge recently issued several discovery rulings in favor of the family, broadening the scope of materials the company has to turn over. Attorneys for the plaintiffs claim that D.R. Horton internal documents will show the company employed “deceptive and coercive sales practices” to get people to buy their homes, the outlet reported.

“It’s going to have an extraordinary impact on our ability to prove that D.R. Horton manipulated potential homebuyers,” Unglesby told The Advocate.

Nevertheless, D.R. Horton attorneys say the matter should be in arbitration between the family and the company.

“It very much remains our position that our arbitration is the legally preferred and best forum for a prompt and fair resolution of the plaintiffs’ claims, as opposed to court proceedings, which typically go on for years,” New Orleans attorney James Alcee Brown told the outlet.

The company’s legal issues aren’t limited to Louisiana. For example, on the island of Kauai, Hawaii, dozens of homeowners claim defectively designed and constructed D.R. Horton homes have led to issues with black slime. Some say the slime is responsible for ongoing health problems, including ear and skin infections, sores and yeast infections.

— Ted Glanzer