Judge pauses lawsuit against D.R. Horton that claims house can't withstand humidity

A Baton Rouge judge has paused a lawsuit that alleges a Youngsville couple's D.R. Horton home was built improperly to wait for an appeals court to decide whether the lawsuit should instead head to an arbitrator.

The ruling, which puts a halt on things like discovery and depositions, came as part of a lawsuit filed by Alicia and West Dixon, who said their home built by Dallas-headquartered national home construction company D.R. Horton wasn't built to withstand the Louisiana humidity.

Lance Unglesby, an attorney for the homeowners, pointed to ventilation problems as the cause of the humidity build-up in the house.

A D.R. Horton spokesperson, Jessica Hansen, told the Daily Advertiser the judge "wisely decided to stay" the proceedings as the company contends the issues at hand should be reserved exclusively for arbitration.

D.R. Horton takes pride in the homes it sells and the health and safety of homeowners is a top priority, she said. The company denies the plaintiffs' claims, Hansen said.

"We did not mislead our homebuyers, as the arbitration clause is prominently featured in our contracts, and the plaintiffs were required to separately initial that clause when they signed their contracts," she said in an email. "By asking that plaintiffs honor their agreements, we are not trying to stall the resolution of their claims; their refusal to honor the agreement to arbitrate is what is stalling the resolution of this case."

Previously: D.R. Horton constructed homes not built for south Louisiana humidity, attorneys say

Unglesby and the other attorneys, including Lafayette lawyers Lance Beal, Alan Haney and Yul B. Lurio, have asked a judge to classify the Youngsville couple's complaint as a class-action lawsuit against D.R. Horton.

Unglesby said there are more than 800 homeowners from Lake Charles to Slidell who have issues with humidity in their D.R. Horton homes and said there are deficiencies with the heating, ventilation and air conditioning systems.

Two other individual lawsuits have been filed against D.R. Horton in Lafayette Parish.

The judge's Tuesday ruling comes after the Dixons' attorneys sought documents from D.R. Horton that Unglesby said could potentially support their claim that D.R. Horton used "high-pressure sales tactics" to get customers to sign contracts without explaining what was in them.

"What we uncovered was that when they presented the document to the homeowner, the homeowner was told the only purpose of the document was to guarantee their right to the house," he said. "In truth, it also contains an arbitration clause, which wasn't communicated. And in Louisiana, nobody is compelled to the consequence of a contract unless they both consented to it."

"It was deceptive and as a result of that, our position is nobody should be compelled to an arbitrion agreement when they didn't know that they were agreeing to arbitration."

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When a judge agreed the plaintiff's attorneys could request limited relevant material during discovery, D.R. Horton appealed that decision, arguing the homeowners should be held to the arbitration clause. Proceedings held in arbitration are typically shielded from the public.

But the attorneys for the homeowners argued the appeal would hold up the process, potentially delaying repairs to the plaintiff's home.

"D.R. Horton wants us in arbitration because they want to keep everything in secret, keep all the problems associated with these homes secret," Unglesby said. "They want this in arbitration; they want this delay."

Hansen disagreed and said the arbitration clause is prominently featured in D.R. Horton's contracts.

"Arbitration is strongly favored in Louisiana because it is typically faster and cheaper than court litigation that often can go on for years, and it is far more likely to deliver just and prompt results for all involved."

The judge Tuesday decided a 30-day halt on the case was necessary to allow an appeals court to make a decision. There is typically no timeline for when an appellate court has to give an opinion, which can sometimes take months. If the higher court doesn't hand down a ruling in that time, the lawsuit and discovery will continue.

If a judge ultimately agrees that the arbitration clause can be struck down, the homeowners will be able to pursue their lawsuit claims, Unglesby said. Otherwise, they'll have to go through an arbitrator.

Contact Ashley White at adwhite@theadvertiser.com or on Twitter @AshleyyDi.

This article originally appeared on Lafayette Daily Advertiser: Louisiana judge pauses D.R. Horton lawsuit claiming house built poorly