Residents of a 55+ community in Nevada and their homeowners association are trying to sue the company that built their million-dollar homes, claiming construction defects that include homes sinking and cracking.
Homeowners living at Del Webb at Lake Las Vegas are trying to sue their builder, Pulte Group, over alleged construction defects. A judge will decide this week whether the case can proceed in court or if it must be handled in arbitration, FOX 5 reported.
Pulte claims arbitration is mandated under an agreement tied to the home purchases and the HOA’s governing documents. However, the homeowners and their HOA say the contract terms are unfair and should not be enforced.
Residents first began reporting last fall that their million-dollar homes were sinking and had cracks in the foundations.
Homeowner John Penn says his home, which is backed up to a rockery wall, has shifted away from the wall. Meanwhile, the wall of rocks has also become unstable, and he worries it may topple.
“It’s frightening in a lot of ways because right now the house is probably pulled away about an inch and a half,” Penn said.
His neighbor, John Ross, who is the HOA board president, lives below the wall and is worried about the possibility of it collapsing and crashing into his home.
“I keep trying to tell everybody that if that wall comes down and I’m sleeping, what’s going to happen?” Ross said.
Willie Barron, a homeowner and disabled veteran, says the cracks in his home’s foundation have taken a toll on him.
“I’m not only stressed. I’m angry. My house keeps sliding, opening up with gaps. I’m a disabled veteran, and it’s hard for me to walk, and a small crack, I will fall. And I have. And Pulte just say, you pay for this,” Barron said.
The HOA’s attorney, Francis Lynch, said the problems go far beyond small cracks and sliding home foundations.
“That problem is spread throughout the neighborhood, right? It’s not just the wall that might be imminent, in danger right now, a life safety issue, but there’s 50 other homes throughout the neighborhood, throughout the community that also have the issues, along with the streets, along with the curbs and gutters,” Lynch said.
The homeowners, HOA and Pulte remain at odds. While the homeowners and HOA want to move forward with lawsuits, Pulte insists they must go to arbitration. During a hearing Monday, Pulte’s attorney, Vail Cloar, argued that the homeowners are relying on a single case to argue that the arbitration provisions are unfair.
However, the homeowners and HOA say arbitration is not appropriate, and have accused Pulte of acting outside of the HOA’s governing documents, which they say waives any right to arbitration.
“We believe, Judge, in the papers that the contract provisions are unfair, unconscionable. Not able to be performed, Judge,” said Bill Coulthard, an attorney for Del Webb homeowners.
Coulthard also raised concerns that the arbitration forum Pulte wants to use is not based in Nevada, and since all of the homeowners are senior citizens living in the state, the dispute should be settled in a Nevada court.
The judge did not issue a ruling Monday. More arguments were scheduled to be heard Thursday.
The Independent has contacted Pulte Group for comment.
