Lawsuit Against D.R. Horton Over Mold Issues Moves Forward

News Summary

A lawsuit against homebuilder D.R. Horton concerning mold and water intrusion in homes across south Louisiana is advancing in state court. Judge Donald Johnson ruled that a sales contract from 2014 is not enforceable, allowing the case filed by West and Alicia Dixon to proceed. The lawsuit, which may become a class-action case, highlights issues with HVAC systems that have led to significant moisture problems, impacting many homeowners. This case could set a precedent for similar claims against builders in Louisiana.

Baton Rouge, Louisiana

A lawsuit against homebuilder D.R. Horton regarding serious mold and water intrusion issues in homes across south Louisiana is proceeding in state court. A recent ruling by Judge Donald Johnson of the 19th Judicial District Court has determined that the sales contract signed by West and Alicia Dixon in 2014 is “not legally binding or enforceable,” allowing the case to move forward.

The Dixons filed their lawsuit in 2014 after purchasing a home from D.R. Horton, alleging that the property was equipped with a poorly designed HVAC system that was ill-suited for the high humidity conditions of Louisiana. The couple claims that D.R. Horton was aware of issues with ventilation systems and included arbitration clauses in their sales agreements to restrict buyers from pursuing legal actions.

In its defense, D.R. Horton argued that the Dixons should resolve the matter through arbitration, referring to contracts that included binding arbitration clauses. However, Judge Johnson clarified that there were two separate contracts involved in the case, concluding that the contract cited by D.R. Horton did not apply to the specific claims made by the Dixons.

This lawsuit is particularly significant as it has the potential to evolve into a class-action case, possibly affecting hundreds of Louisiana residents who purchased homes from D.R. Horton since 2007. The Dixons, alongside expert witnesses and five other homeowners who had similar complaints against the builder, provided testimony regarding the extensive impact of mold and water damage on their living conditions.

An expert in HVAC systems, Dustin Cole, testified that the Dixons’ home exhibited “negative pressure,” which allowed outdoor air and moisture to infiltrate the interior, exacerbating the humidity problems within the house. Alicia Dixon expressed that she was unaware of the arbitration clause and would not have agreed to the contract had she known it would limit her legal options in seeking redress for her grievances.

Testimonies also suggested that D.R. Horton performed what were described as “Band-Aid” repairs to the HVAC systems, doing so until the warranties of the systems expired, which left homeowners to manage necessary repairs without adequate support from the builder. Legal experts, including Louisiana State University law professor Kenya Smith, have characterized the arbitration agreements as inherently biased in favor of D.R. Horton.

In December 2022, the Dixons amended their lawsuit, now pushing for a class-action claim that could potentially involve around 1,000 plaintiffs. D.R. Horton has reportedly sold over 18,000 homes in Louisiana since 2007, with approximately 14,000 homes sold between 2007 and 2022. Many of these homes have been reported to experience moisture and mold problems due to inadequate HVAC designs, with certain properties maintaining humidity levels unsafe for habitation.

The Dixons initially filed their petition for damages in March 2022, navigating through both state and federal courts before landing in state jurisdiction. Judge Johnson’s ruling is anticipated by this Tuesday, which will serve as a crucial determinant for the future course of this case, whether it remains in court or is sent to arbitration.

If the lawsuit continues to progress in state court, it could set a significant precedent for similar claims against major homebuilders across Louisiana. The case reflects a growing concern among homeowners about the quality of residential construction and the responsibility of builders for long-term design flaws and their consequences.

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