HOBB Community

I just want to let everyone know that my wife and I have recently won our binding arbitration case against Grand Homes (here in Texas). It took over 18 months, and lots of fees, but the arbitrator ruled in our favor. They have to buy our house back, pay ALL expenses, legal fees, moving expenses, and post-judgement interest. We went against the big boys and won. Our foundation was under-designed and failed (8 1/2 inches movement!). The only problem is, they are dragging their feet about paying the money! We have been told by our lawyer that they have a history of extending it out as long as they possibly can, even if it costs them interest (a drop in the bucket). This will probably last 6 months before the courts finally MAKE them honor the arbitrator's decision. Does anyone have a suggestion on how to speed the process up? We are contemplating signs and protests.

Followup report:
We did finally close on the property, and Grand Homes did have to fund it. However, our own lawyer tried to sue us at the last minute before closing and threatened to hold up closing over a difference in opinion on his portion of money that he was to get at closing. Everyone please beware of lawyers in general, because SOME of them will try to stab you in the back! All our proceeds are now in escrow until we go to mediation to get our portion of the award. The soap opera continues..... And yes, we plan to file a grievance against him for failing to "act in our best interest at all times". He could  be reprimanded severely for what he did, at least in Texas, his award can be "disgorged", meaning he could lose ALL his award. However, we would have to file suit to accomplish that-- we just want this nightmare to be over, so we are considering what to do...
All we wanted was a new house, and now we're in debt and being threatened by our own unscrupulous lawyer!

Don't really have any suggestions here, but I wanted to congradulate you guys.  I hope that everything works out fine right down to payment.

Congratulations! It is good to know that the hard working, tax-paying citizen who did nothing more then buy a new home prevailed. Keep us informed. :D

Woo hoo! Congrat's, danielcbush!  You are one of the few who get awarded that kind of damages in arbitration.  Be prepared to fight for it as your lawyer has warned you.  Pulte and/or other builders have appealed arbitration decisions even though they were "binding," and IMO builders will pull all kinds of things to get out of paying.  Same is true for litigation.  I've read on hadd.com's news page about SEVERAL builders going out of business this year, and you need to watch that, too.  Even if they fold or sell out Grand Homes, they may still go on building with a brand new name.  That trick not only gets builders out of paying, it hides their history from anyone new coming along to buy a house.  Watch them like a HAWK and don't give up.  Please post progress reports here and share your knowledge.  I'm sure others would like to know what works and what doesn't, too!  Again, Congrat's!

Congratulations.  I am new on this board - just starting the process of going up against Residential Warranty Company.  Our DR Horton (Carrollton, TX) home is 7 years old - submitted our first claim to RWC over two years ago.  They denied coverage for foundation movement but after building french drains and a 2 year drought, have decided to go with arbitration (foundation is heaving in 3 of 4 corners).  Looking for advice on selecting arbitrator and if we are better off hiring attorney.  Engineer that I have hired recommended I go without lawyer because he feels it should be an easy decision for arbitrator.

I am hopeful that arbitration works but want to find an impartial arbitrator (certainly not one of the two recommended by RWC).  Any advice is appreciated. 

Daniel, I think one of the cases where Pulte appealed an arbitration award was "Groceman v. Pulte Homes," in MO.  Your lawyer is probably researching court decisions that support your position in case Pulte tries appealing the award in your case too.

Patrick, IMO you should not go to any kind of dispute resolution without your own competent legal representation.  Your builder will have a lawyer, (at least I've never heard of them showing up unrepresented, especially a big co like DR Horton). 

If  you must arbitrate, you should be choosing from a pool of independent arbitrators such as retired judges etc, not from a pool of arbitrators who repeatedly serve the construction industry.  The arbitrator will have to be researched to be sure they have no ties that make them biased. 

IMO your engineer's suggestion you go without a lawyer is bad advice.  How neutral is your engineer?  He should not be advising you to go to a binding legal proceding unrepresented.  That's just irresponsible of him.  Does he think DR Horton won't have a lawyer?  He is naive if he thinks any legal matter is a slam dunk and that a fair decision is a given.

Good luck to both of you, I hope you have good news to report soon.