Summary
The Louisiana Court of Appeal, First Circuit, affirmed summary judgment dismissing the Whittons' claims against the Louisiana Housing Corporation, formerly the Louisiana Housing Finance Agency. The court held that the agency was not a builder subject to the New Home Warranty Act and had not breached any duty concerning defects in a modular home funded through a state grant program. The court also relied on the Whittons' failure to allow the builder a reasonable opportunity to inspect and repair the alleged defects.
Topics
Practice areas
Questions Presented
- Whether LHC owed or breached a duty to ensure the safety and habitability of the modular home.
- Whether genuine issues of material fact existed concerning whether the Whittons allowed ASD and other defendants access to perform warranty repairs.
- Whether the New Home Warranty Act provided a defense to LHC.
- Whether summary judgment dismissing the Whittons' claims against LHC was proper.
Holdings
- The New Home Warranty Act does not apply to the Whittons' claims against LHC because LHC was not a builder.
- LHC did not breach a duty to the Whittons and could not be held liable for ASD's construction work.
- No genuine issue of material fact remained concerning whether the Whittons allowed the defendants a reasonable opportunity to inspect and repair the home.
- Summary judgment in favor of LHC was proper because the evidence established no genuine issue of material fact and LHC was entitled to judgment as a matter of law.
Key quotations
“As to the Whittons' final assignment of error, we agree that the NHWA, is not applicable to the Whittons' claims against LHC as LHC is not a builder.” (at 6)
“LHC, as the financing agency for the state, did not breach any duty to the Whittons and cannot be liable for the construction work of ASD when recovery from ASD was precluded under the NHWA for the failure to allow them a reasonable opportunity to make repairs.” (at 10)
“For the foregoing reasons, the judgment of the trial court granting summary judgment in favor of the Louisiana Housing Corporation is affirmed.” (at 11)
Factual background
The Whittons obtained a modular home through the Louisiana Restore Share Grant Program, which was administered by LHC and funded with United States Department of Housing and Urban Development funds. After moving into the home, they reported numerous construction and plumbing defects, including conditions allegedly causing water intrusion and mold. LHC inspected the property, recognized several problems, arranged alternative housing, and repeatedly attempted to facilitate ASD's access to inspect and repair the home, but the Whittons refused or failed to allow the requested access.
Procedural history
The Whittons sued the Louisiana Housing Corporation, formerly the Louisiana Housing Finance Agency, and ASD Consultant, Inc., alleging defects in a modular home constructed through a state-administered grant program. The trial court granted summary judgment for LHC, concluding that the Whittons had no viable claim against it. The Whittons appealed, and the Louisiana Court of Appeal reviewed the summary judgment de novo.