Residential Construction Litigation

Disputes involving residential construction are common. Homeowners expect the work to be done right, on time, and within budget, but builders and contractors frequently fall short in one or more of these areas. We represent homeowners, builders, contractors, and subcontractors across Texas in all types of residential construction issues. These typically involve construction defects, payment disputes, delays, breach of warranty claims, and lien-related issues.

Texas residential construction law is governed by Chapter 27 of the Texas Property Code, which outlines specific steps that must be taken before a lawsuit is filed. The process begins with a formal notice to the builder or contractor, detailing the nature of the problem and allowing them an opportunity to inspect or correct the defect. Navigating these mandatory procedures correctly is essential, because failure to comply can severely limit the recovery of damages.

Many residential disputes focus on defective workmanship or construction flaws discovered during or after completion. Sometimes the issues relate directly to errors in architectural or engineering plans; other times the problems are caused by the contractor’s failure to follow plans or meet accepted industry standards. When disputes involve technical construction issues, we often engage independent experts who can clearly identify the cause, scope, and cost of necessary repairs.

Construction delays are another common source of litigation. Some delays, such as those caused by weather, might be unavoidable. But many delays result from mismanagement, labor shortages, or contractor negligence. In these cases, homeowners may have grounds to terminate their contracts or recover damages. Our approach involves careful review of the contractual timelines, documentation of delays, and evaluation of the real costs incurred by our clients.

Residential construction contracts frequently include warranties, either express or implied, which builders must honor. When a homeowner identifies defects covered by warranty but cannot get a satisfactory response from the builder, legal action may become necessary. We assist homeowners in enforcing their warranty rights and also help builders defend against unfounded warranty claims.

Contractors occasionally abandon residential projects after receiving substantial payments, leaving homeowners with incomplete or poorly performed work. This scenario often leads to complex legal challenges, especially when subcontractors or suppliers file mechanic’s liens due to nonpayment by the original contractor. We help homeowners navigate these complicated situations, including removal of invalid liens and recovery of costs related to completing abandoned projects.

We also regularly deal with payment disputes. Under Texas law, contractors who receive payment from homeowners must use these funds to pay subcontractors and suppliers. When contractors fail to do this, homeowners risk being dragged into litigation or facing liens. Our experience in these matters ensures our clients’ interests are fully protected.

Every residential construction dispute is unique, but the key to resolving these matters efficiently lies in timely action, careful documentation, and precise legal strategy. If you’re involved in a dispute or anticipate one arising, contact us. We’ll evaluate your case quickly, outline your rights and options clearly, and pursue the outcome that best protects your interests.

Case Law Highlights: Residential Construction

Residential construction litigation in Texas is guided not just by statute, but by how courts interpret warranty rights, arbitration clauses, and builder obligations. These key decisions clarify the legal boundaries homeowners and builders must navigate and they continue to shape how residential disputes are resolved across the state.

Lennar Homes  of  Texas  Land  &  Construction,  Ltd.  v.  Whiteley,  672  S.W. 3d  367  (Tex.  2023)

The Texas Supreme Court reinstated an arbitrator’s take‑nothing award in favor of the builder and compelled a subsequent homeowner to arbitrate all defect claims. Because the suit for negligent construction and breach of the implied warranties depended on, and sought benefits created by, the original purchase‑and‑sale agreement, they were bound to that contract’s arbitration clause under direct‑benefits estoppel.

The Court also confirmed that an express written warranty incorporated into the sales contract can supersede the implied good‑workmanship warranty, while the habitability warranty travels with the home and is still contract‑based, so both claims fall within the arbitration agreement. The justices left untouched an award involving subcontractors, holding they were never properly before the trial court after it denied joinder, and remanded for further proceedings on that limited point.

Perry Homes v. Cull, 258 S.W.3d 580 (Tex. 2008)

In this high-profile case, the Culls sued their homebuilder over a defective foundation but later sought to compel arbitration under a clause in the sales contract. Perry Homes objected, arguing the Culls had waived that right by litigating the case for 14 months, including discovery and motion practice. The Texas Supreme Court agreed, holding that a party may waive the right to arbitration by substantially invoking the judicial process and causing prejudice to the other side.

The ruling underscores how critical it is to raise arbitration early and consistently. Builders relying on arbitration clauses must enforce those provisions at the outset or risk forfeiting them. Conversely, homeowners cannot treat arbitration as a fallback if litigation becomes unfavorable. Once a party has engaged in court proceedings to a significant degree, Texas courts may hold that arbitration is no longer available.