Stutts v. Melton

The Supreme Court granted certiorari in this case to determine whether the New Home Warranty Act ("NHWA") provided the exclusive remedy between a home builder and a purchaser of residential property, where the builder failed to disclose known defects in the home in a Residential Property Disclosure Statement. The NHWA provides the "exclusive remedies, warranties, and preemptive periods as between builder and owner relative to home construction," but, when the new home is occupied by the builder for some time period before being sold, the builder/seller must also comply with the provisions of the RPDA. As the RPDA does not "limit or modify any obligation between buyers and sellers created by any other statute or that may exist in law," a seller can be liable for fraud for violating the RPDA. In this case, the trial court found the Meltons committed fraud by making a willful misrepresentation of a known defect and this was not manifest error. After reviewing the record and the applicable law, the Supreme Court reversed the judgment of the court of appeal and held that the purchasers were not limited to the provisions of the NHWA under the facts of this case. View "Stutts v. Melton" on Justia Law