Mattingly v. Palmer Ridge Homes, LLC

157 Wash. App. 376
CourtCourt of Appeals of Washington
DecidedAugust 5, 2010
DocketNo. 38981-9-II
StatusPublished
Cited by14 cases

This text of 157 Wash. App. 376 (Mattingly v. Palmer Ridge Homes, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mattingly v. Palmer Ridge Homes, LLC, 157 Wash. App. 376 (Wash. Ct. App. 2010).

Opinion

Van Deren, J.

¶1 Steven and Deborah Mattingly appeal the trial court’s order granting summary judgment to Palmer Ridge Homes based on limitations contained within a construction contract and a third party home warranty that Palmer Ridge supplied to the Mattinglys. The Mattinglys argue that (1) Palmer Ridge’s failure to supply the booklet outlining the terms of the warranty demonstrates procedural unconscionability, (2) consideration did not support the limitations in the warranty, (3) they did not intend the warranty to limit their ability to bring an action against Palmer Ridge, (4) the warranty did not effectively disclaim implied and express warranties, and (5) the construction contract’s one year limitation on suit should have begun when items on the inspection checklist (punch list) were completed and not at the time of substantial completion. We affirm the order granting summary judgment in part on other grounds but reverse and remand for further proceedings to determine if or when Palmer Ridge completed the punch list items or ceased work at the Mattinglys’ home. If the Mattinglys sued within one year of completion of the punch list or cessation of work at the Mattinglys’ home, the trial court must determine Palmer Ridge’s liability for items on the punch list or damage covered by express warranties in the construction contract. We also vacate the trial court’s attorney fees award to Palmer Ridge and remand for further proceedings, after which attorney fees and costs for trial and the appeal may be determined.

FACTS

¶2 On December 28, 2005, the Mattinglys signed an agreement with Palmer Ridge to purchase a five acre lot in [382]*382Roy, Washington. On January 12, 2006, the Mattinglys agreed1 to pay Palmer Ridge $563,7502 3to erect a custom home on the lot. The construction contract set out Palmer Ridge’s duties:

6.1 All work shall be in accordance to the provisions of the plans and specifications. All systems shall be in good working order.
6.2 All work shall be completed in a workman like manner, and shall comply with all applicable national, state and local building codes and laws.
6.3 All work shall be performed by licensed individuals to perform their said work, as outlined by law.
6.4 Contractor shall obtain all permits necessary for the work to be completed.
6.5 Contractor shall remove all construction debris and leave the project in broom clean condition.®

Clerk’s Papers (CP) at 358-59. The construction contract also explained, “Upon completion, the project shall be inspected by the Owner and the Contractor, and any repairs necessary to comply with the contract documents shall be made by the Contractor.” CP at 361.

¶3 The construction contract restricted the Mattinglys’ ability to bring an action against Palmer Ridge in court:

At the completion of this project, Contractor shall execute an instrument to Owner warranting the project for one year against defects in workmanship or materials utilized. The manufacturers[’] warrantees] will prevail. No legal action of any kind relating to the project, project performance or this contract shall be initiated by either party against the other [383]*383party after one year beyond the completion of the project or cessation of work.

CP at 360.

¶4 On May 18, 2006, the land purchase and construction contract closed. On June 5, the Mattinglys signed a deed of trust for the property and they signed an application for enrollment in the 2-10 Home Buyers Warranty new home warranty program (2-10 HBW warranty). As part of the enrollment, the Mattinglys acknowledged that they “read a sample copy of the Warranty Booklet, and CONSENT TO THE TERMS OF THESE DOCUMENTS” and that they “further understand that when the warranty is issued on [their] new home, it is an Express Limited Warranty and that all claims and liabilities are limited to and by the terms and conditions of the Express Limited Warranty as stated in the 2-10 HBW® Booklet.” CP at 291. But the Mattinglys did not, in fact, see a copy of the sample warranty booklet before they signed the enrollment application, did not understand that the 2-10 HBW warranty limited their ability to bring suit under the construction contract, and did not intend to waive express warranties by Palmer Ridge in the construction contract.4

¶5 Construction proceeded and continued until the Mattinglys signed a certificate of substantial completion on April 1, 2007. The certificate of substantial completion stated:

The work performed under the Contract Documents for the before mentioned project, has been reviewed and found to be substantially complete. The owner and contractor further acknowledge and agree as follows:
3. An Inspection Check List of items to be completed on the project has been listed by the Owner and is attached to this document. The Inspection Check List details items that have not been properly constructed or are not in proper [384]*384condition. Except as noted on the Inspection Check List, the owner accepts the project as is and understands from now on the owner will not have a claim against the contractor for overlooking any item that was not listed that could have been seen during the owner’s inspection.
4. The owner understands that the duration of all implied warranties has been limited to one (1) year from the date of final payment or the date of occupancy, whichever comes first. The owner understands that no warranties are being made by the contractor, except those in the written Limited Warranty provided by the contractor as part of the Contract Documents. Accepting the Limited Warranty, the owner will have no right to recover or receive compensation for any incidental, consequential, secondary, punitive or special damages nor any costs or attorney [ ] fees.
5. The date of Substantial Completion is hereby established as: March 30th, 2007 which is also the date of all applicable warranties required by the Contract Documents, except as stated below.
6. The Contractor will complete or correct the work on the attached Inspection Check List [(punch list)] within 10 days,
ACCEPTANCE
The Owner accepts the project as substantially complete and will assume full possession after said Inspection Check List [(punch list)] is completed and full payment is received by Contractor.

CP at 183-84.

¶6 The Mattinglys and Palmer Ridge conducted a walk-through of the home where the Mattinglys could identify specific problems for Palmer Ridge to correct. The Mattinglys reviewed Palmer Ridge’s generic punch list form but submitted a separate list with their concerns6 on April 16. Although displeased with the list, Palmer Ridge appears [385]*385to have agreed with all of the items except for repairs to the asphalt.

¶7 On April 23,7 the Mattinglys paid the remaining balance due on the construction contract.

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Cite This Page — Counsel Stack

Bluebook (online)
157 Wash. App. 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mattingly-v-palmer-ridge-homes-llc-washctapp-2010.