LAS VEGAS (FOX5) — Homeowners in the Del Webb Lake Las Vegas 55+ community and their homeowners association were in court Monday as they try to sue the builder, Pulte Group, over alleged construction defects that residents say have caused their million-dollar homes to sink and crack.
The dispute, now before a judge, centers on whether the case can proceed in court — or whether it must be handled in arbitration, as Pulte argues is required under agreements tied to the home purchases and the HOA’s governing documents.
FOX5 first reported concerns from homeowners last fall, including residents who said they were seeing damage they believe is linked to broader issues affecting the entire community.
Pulte: HOA’s lawsuit effort shouldn’t bypass arbitration
In a hearing packed with homeowners, an attorney for Pulte — one of the nation’s largest homebuilders — argued the HOA and residents should not be allowed to avoid arbitration and file lawsuits instead.
Vail Cloar, a litigation attorney representing Pulte, told the court the homeowners’ side is relying on a single case to argue the arbitration provisions are unfair.
“The only case, the only authority the association points to for procedural unconscionability is the Gruden case,” Cloar said.
Cloar also argued the legal reasoning in that case does not apply the same way in Nevada.
“So the majority in Gruden says, we’re going to find some modicum of procedural unconscionability because it’s contract of adhesion under California law and simply moves on,” Cloar said. “That’s not the law in Nevada, your honor. That’s simply not the law.”
Homeowners: arbitration provisions are unfair, improper
Attorneys for the homeowners and HOA argued arbitration is not appropriate for multiple reasons, including claims that Pulte acted outside the HOA’s CC&Rs, which they contend waived any right to force arbitration.
“Judge, we need your help balancing the playing field because we sure haven’t gotten it from Pulte,” said Bill Coulthard, an attorney for Del Webb homeowners.
The homeowners’ side also argued the contract terms are unfair and should not be enforced.
“So we believe, Judge, in the papers that the contract provisions are unfair, unconscionable. Not able to be performed, Judge,” Coulthard said during the hearing.
They also raised concerns about the arbitration forum Pulte wants to use, arguing it does not have a physical chapter in Nevada and that the dispute — involving dozens of Nevada senior citizen homeowners — should be decided in a Nevada court.
What’s next
The judge did not rule Monday and scheduled further arguments for Thursday. The judge also approved out-of-state attorneys to argue the case after Pulte requested permission.
For FOX5’s previous coverage, including a walkthrough inside homes and interviews with homeowners, click here:
EXCLUSIVE: Group of Lake Las Vegas homeowners claim million-dollar homes falling apart
Lake Las Vegas homeowners head to court over alleged construction defects
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