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Who's To Blame?
The strongest construction defect claims are usually against the general contractor. Whether a custom house or a "spec" house, most litigation involves homes bought directly from the builder. The general contractor applied for the building permit, picked the products used on the house, hired the subcontractors, coordinated construction, obtained the certificate of occupancy and sold the house to the consumer. Therefore, while general contractors may have claims against manufacturers, architects, subcontractors and other parties, the only party that the homeowner usually deals with directly is the general contractor. Most states' laws provide potentially strong causes of action against general contractors who construct houses with construction defects and code violations. In some states, homeowners generally do not have a direct cause of action against the subcontractors or manufacturers of defective building products. It may be possible, however, for the general contractor to assert claims against these parties. In some cases, the facts may justify claims against one or more "peripheral" parties: previous owners, home inspectors, architects, developers, termite companies, real estate agents, distributors, etc. Such claims are generally rare. The cases against such parties are usually less appealing than suing the builder, not only because these peripheral entities frequently have minimal assets and/or no insurance, but also allegations against them are usually more convoluted and difficult to prove. Clearly, there are exceptions. Previous homeowners with knowledge of defects who sell to unsuspecting buyers without disclosure are deserving defendants, particularly if they have assets to support a judgment. Developers who require homeowners to use "approved builders," but know that the builders lack necessary licenses and are financially unable to complete a job, may also be viable defendants. Similarly, architects who have contracted with homeowners to administer the construction contract, and whose negligent oversight results in deviations from the plans and in defective conditions, may be appropriate defendants. In short, a determination of "who's to blame" must follow a thorough analysis of the facts of each case. In most situations, the general contractor will be the primary target. |
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