In the past year, the 10th District Court of Appeals, which decides appeals from the Franklin County Common Pleas Court, published two decisions in cases that dealt with warranty issues concerning new home builders and residential construction. The cases are Jones v. Centex Homes, 189 Ohio App.3d 668 (Ohio App. 2010) and Landis v. William Fannin Builders, Inc., 2011-Ohio-1489.
The common thread is the implied warranty of good workmanship. In the Jones case, the Court found that the buyers had in fact waived all implied warranties, including the implied warranty of good workmanship. In the contract between Jones and Centex, the builder stated that it “…would not sell the property to Purchasers without this waiver.” Probably should have been a sign to the buyers.
In the Landis case, the Court stated, “Contracts for the future construction of a residence include a duty, implied by law, that the builder must perform its work in a workmanlike manner.” The Court gave significant weight to the concept of the implied warranty of good workmanship. The builder relied upon the BIA Warranty which limits builders’ liability and exposure to legal issues. The trial court concluded there was no breach of the limited warranty, rather the builder “breached the duty of workmanlike conduct implicit in the construction contract, not the limited warranty requiring it to satisfy the BIAs Quality Standards.”
While it may be advantageous for builders to contractually limit implied common law warranties, it may not be so good for buyers. The Ohio Supreme Court has accepted the Jones v. Centex case, so there may be further developments in the near future.
