Mike Gines v. D.R. Horton, Incorporated
2012 U.S. App. LEXIS 21650
| 5th Cir. | 2012Background
- Gines purchased a newly constructed Louisiana home in 2006 from Horton; the home's air conditioning system was installed by Reliant.
- After possession, Gines claimed the system was undersized and could not maintain appropriate temperatures; Horton and Reliant attempted repairs.
- Gines filed a class action in state court, removed to federal court, asserting NHWA, redhibition, breach of contract, poor workmanship, non-compliance, and negligence.
- Horton moved to dismiss, arguing NHWA is the exclusive remedy and requires a showing of actual physical damage; the district court granted dismissal.
- Louisiana Supreme Court precedents (Carter and Marks) confirm NHWA provides exclusive remedies between builder and owner for new-home construction defects.
- Litigation proceeded in the Fifth Circuit to determine (1) NHWA exclusivity and (2) whether actual physical damage is required to plead NHWA claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is NHWA the exclusive remedy for new-home defects? | Gines argues NHWA isn’t exclusive and требует recovery beyond physical damage. | Horton asserts NHWA provides exclusive remedies for new-home defects. | Yes; NHWA is exclusive between owner and builder for new-home construction defects. |
| Must NHWA claims allege actual physical damage to the home? | Gines contends the statute’s A(2) warranty exception bypasses damage requirement. | Horton argues the B(13) actual physical damage exclusion applies, preventing NHWA claims without damage. | Yes; actual physical damage is required under NHWA unless otherwise waived by contract, which was not proven. |
Key Cases Cited
- Carter v. Duhe, 921 So.2d 963 (La. 2006) (NHWA exclusive remedy between owner and builder; no waiver for lack of notice.)
- Marks v. New Orleans Police Department, 943 So.2d 1028 (La. 2006) (Affirms Carter’s scope of NHWA exclusivity.)
- Oubre v. La. Citizens Fair Plan, 79 So.3d 987 (La. 2011) (Concerning rules of statutory interpretation in NHWA context.)
- American Waste & Pollution Control Co. v. Browning-Ferris, Inc., 949 F.2d 1384 (5th Cir. 1991) (Erie-guess methodology; informs state-law interpretation in diversity.)
- Conerly v. State, 714 So.2d 709 (La. 1998) (Statutory interpretation rules; avoidance of absurd results in NHWA reading.)
- Ruiz v. Oniate, 713 So.2d 442 (La. 1998) (Guides interpretation of statutory language and intent.)
- McLane S., Inc. v. Bridges, 84 So.3d 479 (La. 2012) (Purports to address statutory interpretation context; relevance to potential absurdity concerns.)