May 31, 2012
The Ohio Supreme Court recently issued a very important ruling for home builders and contractors throughout Ohio. Centex Homes, a residential home builder, in its contract with its buyers attempted to disclaim all construction warranties and limit the buyers to certain specific written warranties. Jones and other claimants, however, brought claims for construction defects they felt were outside the warranties. Centex Homes argued that the warranty disclaimer prevented the claims from being filed. The trial court and court of appeals agreed, dismissed the claims, and upheld the written warranty disclaimers.
But, the Ohio Supreme Court disagreed and reinstated the plaintiffs’ claims. The Ohio Supreme Court reaffirmed that, throughout Ohio, there is an implied “duty” on the part of every home builder to construct in a workmanlike manner and that, if that duty is violated, the homeowner has a claim for the breach of that duty. This is a “duty,” not a warranty and, thus, cannot be excluded by written contract disclaimer.
In light of the Centex Homes ruling, all homebuilders operating in Ohio should carefully review their contracts to determine whether their warranty disclaimers are now appropriate and enforceable. And, most important, all contractors throughout Ohio should understand that, regardless of what their contract says or disclaims, Ohio law enforces an “implied” and unwritten duty to build in a workmanlike and proper manner. It is a duty that cannot be disavowed.