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KB Home investigation could lead to construction litigation

Buying a home is a major life event for most Americans. For many, it signifies a transition into adulthood, preparation for a family, or a marker of financial success. It is a decision that is not made lightly, and consumers expect to receive a quality product when they purchase a newly constructed home. A recent chain of events has led may Florida homebuyers to wonder if they may have purchased a substandard product from construction giant KB Home. An investigation into the company’s practices might be on the horizon, and construction litigation may soon follow.

A Florida senator has requested that the state’s attorney general look into the business dealings of KB Home. That request was made when the senator learned that at least two whistle-blower suits have been filed by former KB Home employees in recent years. The base of those suits lies in claims that the construction company was aware of structural defects in an East Manatee development.

One of the suits alleges that KB Home knew about and tried to conceal structural defects in as many as 60 townhomes in the development. The homebuilder is said to have used ‘substandard/inadequate materials’ in the construction of these units. These claims seem to be backed up by numerous complaints by homeowners in the development who have fought with the company for years over structural defects. Some of the issues experienced by homeowners include water intrusion, mold issues, sinking floors and unsafe balconies.

The senator asserts that this is not the only community that has experienced problems with KB Home, and he points out that class action lawsuits have been filed against the homebuilder in multiple states. Should Florida Attorney General Pam Bondi open an investigation into the business dealings of KB Home, more information could be made available to the public in regard to the construction of the company’s various developments. Armed with this information, additional construction litigation could follow.

Source: Bradenton Herald, “State senator asks Florida attorney general to investigate KB Home,” Nick Williams, Oct. 2, 2012

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