Legal Alert - Homebuilders Do Not Owe a Duty of Care to Non-Original Homeowners


by Brett J. Rufer and Richard G. Erickson

Recently, the Arizona Court of Appeals answered another lingering question of paramount importance to the construction industry – whether homebuilders and other construction industry professionals may be indefinitely subject to negligence claims based on alleged construction defects. In Sullivan v. Pulte Home Corp., No. 1 CA-CV 14-0199, the Arizona Court of Appeals held that homebuilders do not owe a duty of care to subsequent (non-original) homeowners for solely economic losses arising from latent construction defect claims. The ruling helps to quell fears raised after the Arizona Court of Appeals and Arizona Supreme Court recently opened the door to such claims.

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