Builder settles dispute with S.A. homeowners
The Sitterle Corp. and homeowners Jay and Joy Hirata had been at odds for two years over the Hirata's home in Emerald Forest, an upscale gated community on the North Side, where homes range from the $300,000s to the $400,000s...In August, Jay Hirata posted complaints about Sitterle on the discussion board of a San Antonio-based consumer advocacy group's Web site, Home Owners for Better Building. Sitterle fired back with a libel lawsuit. Although not unheard of, lawsuits by builders against their clients are unusual... The Hiratas' suit against Sitterle went to trial in late September and was in the closing argument phase when the settlement was reached. See posted complaint.  Related articles: Express News Report... Sitterle Homes makes the List of Bizarre legal cases. Press Release: Closing arguments... See exclusive photos of Hirata house and courtroom.

Express-News
Builder settles dispute with S.A. homeowners
10/11/2006
Jennifer Hiller
Express-News Business Writer

An unusually public legal dispute between a high-end San Antonio builder and two of its clients, an Army colonel and his wife, ended Wednesday afternoon when the two sides reached a private settlement.

The Sitterle Corp. and homeowners Jay and Joy Hirata had been at odds for two years over the Hirata's home in Emerald Forest, an upscale gated community on the North Side, where homes range from the $300,000s to the $400,000s.

The Hiratassued the builder over problems with a leaky basement in their hillside home.

In August, Jay Hirata posted complaints about Sitterle on the discussion board of a San Antonio-based consumer advocacy group's Web site, Home Owners for Better Building. Sitterle fired back with a libel lawsuit.

Although not unheard of, lawsuits by builders against their clients are unusual.

Wednesday's agreement resolves all disputes between the homeowners and the builder, including the libel lawsuit, attorneys for both sides said.

Daniel Kustoff, the Hiratas' attorney, and the builder's attorney, William Oliver, said they expect to release a statement in the next day or two, but that the settlement terms would remain confidential.

The Hiratas' suit against Sitterle went to trial in late September and was in the closing argument phase when the settlement was reached.

The couple bought their house, a former model home, in June 2004 and soon noticed that water was leaking into the basement after it rained.

Among the fixes, Sitterle applied to the basement walls a product called Line-X, which is commonly used as a spray-on truck-bed liner. The Hiratas said the leaking continued and complained that Line-X was not an approved product for home construction.

The couple filed a complaint with the Texas Residential Construction Commission, a state agency that oversees the home building industry. The commission's independent inspector and its appellate panel sided with the Hiratas.

During the legal wrangling, Jay Hirata was stationed in Spain. His wife had to stay in San Antonio overseeing the house, which could not be sold until the dispute was settled.

Originally, the Hiratas wanted Sitterle to buy back their home and compensate them for time apart and the expense of maintaining two households.

The case is believed to be the first to go to court following the state Legislature's creation of the Texas Residential Construction Commission in 2003, Kustoff said.

The settlement came none too soon for the Hiratas. Jay Hirata had to take military leave to return from Spain to deal with the lawsuits — something he says has been an enormous burden for the couple.

Joy Hirata said she plans to join her husband in Spain soon.
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