Homeowners win $13.6M in arbitration against Del Webb
An arbitration panel has awarded homeowners in the Sun City Grand community in Surprise $13.6 million as compensation for construction defects at homes built by Del Webb Communities Inc. The binding arbitration covers 460 homes. Del Webb spokeswoman Jacque Petroulakis said the arbitrators awarded just $7.8 million to the homeowners involved and $5.7 million for attorney's fees, expert fees and cost. She said the original claim, filed in 2008, asked for $52 million, substantially more than ultimately was awarded.
Homeowners win $13.6M in arbitration against Del Webb
Phoenix Business Journal by Jan Buchholz, Reporter
An arbitration panel has awarded homeowners in the Sun City Grand community in Surprise $13.6 million as compensation for construction defects at homes built by Del Webb Communities Inc., a subsidiary of
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The binding arbitration covers 460 homes. Another 413 homeowners are seeking compensation for construction defects through a Maricopa County Superior Court case that currently is pending.
The latter group of homeowners were unable to participate in the binding arbitration because they either did not have a contract with Del Webb or the arbitration clause in their sales contract was unenforceable. Thus, they are seeking compensation through the courts.
âThis award is final and the homeowners will be receiving their funds in the near future so they can begin to repair their homes,â said Ken Kasdan, senior partner with Kasdan Simonds Weber & Vaughan LLP in Phoenix, which represents both sets of homeowners.
âThe owners of the homes included in the lawsuit are anxious to have their day in court,â Kasdan said.
Del Webb spokeswoman Jacque Petroulakis said the arbitrators awarded just $7.8 million to the homeowners involved and $5.7 million for attorney's fees, expert fees and cost. She said the original claim, filed in 2008, asked for $52 million, substantially more than ultimately was awarded.
âThe majority of the award to these homeowners cover issues that Del Webb acknowledged needed repair. We were willing to make appropriate repairs,â Petroulakis said.
The nature of the construction defects is unknown. Stephen Weber, a partner with Kasdan, Simonds Weber & Vaughan, said he could not discuss the specifics because of the pending litigation. However, he said the houses were built between 1998 and 2005.
Kasdan said the 873 homeowners represent one of the largest construction defect cases in the state. http://www.bizjournals.com/phoenix/news/2012/03/02/homeowners-win-136m-in-arbitration.html |