Centex Homes v. Buecher

95 S.W.3d 266, 46 Tex. Sup. Ct. J. 294, 2002 Tex. LEXIS 219, 2001 WL 34055991
CourtTexas Supreme Court
DecidedDecember 31, 2002
Docket00-0479
StatusPublished
Cited by69 cases

This text of 95 S.W.3d 266 (Centex Homes v. Buecher) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Centex Homes v. Buecher, 95 S.W.3d 266, 46 Tex. Sup. Ct. J. 294, 2002 Tex. LEXIS 219, 2001 WL 34055991 (Tex. 2002).

Opinions

Chief Justice PHILLIPS

delivered the opinion of the Court,1

in which Justice HANKINSON, Justice O’NEILL, Justice JEFFERSON, and Justice SMITH joined.

We deny Centex Homes’ motion for rehearing. We withdraw our opinion of August 29, 2002, and substitute the following in its place.

The issue in this case is whether a hom-ebuilder may disclaim the implied warranties of habitability and good and workmanlike construction that accompany a new home sale. The sales contract here provided that the builder’s express limited warranty replaced all other warranties, including these two implied warranties. Holding that the implied warranties of habitability and good and workmanlike construction could not be waived, the court of appeals reversed the trial court’s judgment and remanded the homeowners’ claims for further proceedings. 18 S.W.3d 807.

We agree with the court of appeals that the implied warranty of habitability cannot be waived except under limited circumstances not implicated here. We disagree, however, that the implied warranty of good and workmanlike construction cannot be disclaimed. When the parties’ agreement sufficiently describes the manner, performance or quality of construction, the express agreement may supersede the implied warranty of good workmanship. Although we do not agree in all respects with the court of appeals’ reasoning, we affirm its judgment remanding this cause to the trial court.

I

Michael Buecher and other homeowners purchased new homes built by Centex Homes or Centex Real Estate Corporation doing business as Centex Homes. Each homeowner signed a standard form sales agreement prepared by Centex. The homeowners allege that the agreement contained a one-year limited express warranty in lieu of and waiving the implied warranties of habitability and good and workmanlike construction. Specifically, the disclaimer provision provided:

At closing Seller will deliver to Purchaser, Seller’s standard form of homeowner’s Limited Home Warranty against defects in workmanship and materials, a copy of which is available to Purchaser. PURCHASER AGREES TO ACCEPT SAID HOMEOWNER’S WARRANTY AT CLOSING IN LIEU OF ALL OTHER WARRANTIES, WHATSOEVER, WHETHER EXPRESSED OR IMPLIED BY LAW, AND INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF GOOD WORKMANLIKE CONSTRUCTION AND HABITABILITY. PURCHASER ACKNOWLEDGES AND AGREES THAT SELLER IS RELYING ON THIS WAIVER AND WOULD NOT SELL THE PROPERTY TO PURCHASER WITHOUT THIS WAIVER. Purchaser’s ini[269]*269tials in the margin indicate their approval of this section 8.

(Emphasis in original.)

After Buecher and the other plaintiffs purchased their homes, they sued Centex alleging fraud, misrepresentation, negligence, and violation of the of the Texas Deceptive Trade Practices-Consumer Protection Act (“DTPA”) in connection with the construction and sale of their new homes. The homeowners also sought to certify a class action against Centex, seeking (1) an injunction to prevent Centex from asserting that the implied warranties of habitability and good and workmanlike construction had been waived by the provisions in its sales contracts; (2) an injunction prohibiting Centex from asserting to any homeowner or subsequent purchaser that it had no liability for construction defects beyond the period set forth in the express warranty it gave in lieu of implied warranties; (3) a declaration that the disclaimer provision is unenforceable as a matter of law; and (4) notification to all purchasers and subsequent purchasers within the putative class that Centex’s waiver of implied warranties is void and unenforceable.

Centex filed a special exception and motion to dismiss the proposed class action. Relying on G-W-L, Inc. v. Robichaux, 643 S.W.2d 392 (Tex.1982), it argued that a purchaser of a new home can waive the implied warranties of good and workmanlike construction and habitability if the language waiving those warranties is clear and free from doubt. Centex asserted that the waiver at issue in this ease was clear and free from doubt. Centex also argued that its waiver provision did not violate the DTPA’s anti-waiver provision because the DTPA does not create any implied warranty of good and workmanlike construction or habitability, but only provides an additional remedy for breach of implied warranties.

The homeowners announced in open court that they could not amend them petition to meet Centex’s special exception. The trial court (1) granted the special exception; (2) struck all the class action allegations based on the contention that the disclaimer provision is illegal, void, or unenforceable; (3) severed those claims from the homeowners’ individual claims; and (4) dismissed the proposed class action. The homeowners appealed. A divided court of appeals, sitting en banc, reversed the trial court’s judgment and remanded the cause for further proceedings. 18 S.W.3d 807, 811. The court of appeals held that a homebuilder may not disclaim or cause a homeowner to waive the implied warranties of habitability and good and workmanlike construction. Id. at 808.

II

In Humber v. Morton, 426 S.W.2d 554, 555 (Tex.1968), this Court recognized that a builder of a new home impliedly warrants that the residence is constructed in a good and workmanlike manner and is suitable for human habitation. In replacing caveat emptor with these two implied warranties, we noted the significance of a new home purchase for most buyers and the difficulty of discovering or guarding against latent defects in construction:

The old rule of caveat emptor does not satisfy the demands of justice in [the sale of new homes]. The purchase of a home is not an everyday transaction for the average family, and in many instances is the most important transaction of a lifetime. To apply the rule of caveat emptor to an inexperienced buyer, and in favor of a builder who is daily engaged in the business of building and selling houses, is manifestly a denial of justice.

[270]*270Humber, 426 S.W.2d at 561 (quoting Bethlahmy v. Bechtel, 91 Idaho 55, 415 P.2d 698 (1966)). Subsequently, in G-W-L, Inc. v. Robichaux, we conflated the Humber warranties of good workmanship and habitability, concluding that the “Humber warranty” could be disclaimed or waived if that intent were clearly expressed in the parties’ agreement. Robichaux, 643 S.W.2d at 393. Centex therefore argues that the court of appeals’ holding that the implied warranties of good and workmanlike construction and habitability cannot be waived conflicts with Robichaux.

The homeowners respond that Robi-chaux is no longer the law in Texas because it was overruled in Melody Home Manufacturing Co. v. Barnes, 741 S.W.2d 349, 355 (Tex.1987). Melody Home recognized for the first time an implied warranty of good workmanship in the repair or modification of tangible goods or property. Id. at 354.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sam Mathewson v. Anglia Homes, L.P.
Court of Appeals of Texas, 2025
Tina Zambrano v. M & Rc II LLC
Arizona Supreme Court, 2022
Nghiem v. Sajib
567 S.W.3d 718 (Texas Supreme Court, 2019)
Gary Jones and Carolyn Jones v. Pesak Brothers Construction, Inc.
416 S.W.3d 618 (Court of Appeals of Texas, 2013)
Mid-Continent Casualty Company v. Castagna, Vanessa
410 S.W.3d 445 (Court of Appeals of Texas, 2013)
Finance Commission v. Norwood
418 S.W.3d 566 (Texas Supreme Court, 2013)
Kay YOST, Appellant v. JERED CUSTOM HOMES, Appellee
399 S.W.3d 653 (Court of Appeals of Texas, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
95 S.W.3d 266, 46 Tex. Sup. Ct. J. 294, 2002 Tex. LEXIS 219, 2001 WL 34055991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centex-homes-v-buecher-tex-2002.