Bennett v. CMH Homes, Inc.

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In 2004, the plaintiffs’ Rockvale, Tennessee home burned down. They replaced it with a 2180-square-foot, “triple-wide” manufactured home purchased from the defendant for $160,230. Defendant was responsible for “normal delivery and installation” on the plaintiffs’ land and warranted that, “[f]or new homes, installation at the initial homesite will be completed in accordance with applicable governmental requirements.” Defendant delivered and installed the home in March 2005, but only one member of the installation crew was identified. He was not licensed to install manufactured homes as required by T.C. 68-126-404(a). Plaintiffs immediately began noticing defects that suggested the home was not level when installed and notified the defendant before they closed the purchase. Defendant assured plaintiffs that it would repair and level the home. After several years of inspections and repair efforts, defendant never levelled or repaired the home to the plaintiffs’ satisfaction. Plaintiffs sued, claiming breach of contract and federal breach of warranty under15 U.S.C.A. 2304, the Magnuson-Moss Warranty Act, “and/or other applicable law.” The district court held that an arbitration clause was invalid and awarded $39,238.29. The Sixth Circuit remanded, concluding that federal jurisdiction did not exist because the home is not a “consumer product” under the Magnuson-Moss Act.View "Bennett v. CMH Homes, Inc." on Justia Law