News and Current Events

Feb 8 2003 The Abuse of Arbitration in New Home Contracts. "...arbitration is a private, profit motivated justice system forced upon new homebuyers, and is abusive, extremely costly, grossly unfair and provides no negligible benefit to the homebuyer."

Feb 8 2003 Press Release: Homeowner consumer group raises concerns about builder bill.
It is encouraging to see the new home building industry has acknowledged the laws in Texas do not provide adequate consumer protection for the biggest investment of our lives. But for the builders to say this bill will be "good for the consumers" must be taken with a grain of salt the size of a water heater.

Jan 15 2003 Press Release: Centex Notifies California Centex Homeowners- They are not bound by Mandatory Alternative Dispute Resolution, ADR, provisions in Centex Sales Agreement
MADERA, CA--01/15/03 HADD National Director, Sandy Skipper-Lopez (Madera, California), and attorney Douglas Grinnell (San Diego, California) are pleased with the outcome of the Centex Lawsuit and hope it serves as a reminder to other mass-production builders and contractors, that taking away homeownersí constitutional rights is not an avenue for safe residential construction.

Jan 1 2003 Press Release. New Home Warranties. Deception or Protection?.
HOUSTON, TX -- 01/01/03. Homeowners Against Deficient Dwellings (HADD), a national non-profit consumer advocacy organization released a new report identifying extreme limitations and loopholes in new home warranties. The report, "New Home Warranties. Deception or Protection?" analyzes the warranties used by the majority of builders in Texas and highlights the limitations, exclusions, and unreasonable maintenance requirements common to each warranty. (download the report at http://www.hadd.com/warranty.pdf)

Jan 18 2003 Civil Practice Committee Interim Study on Arbitration.

Jan 15 2003 HADD Report: Home Warranty Coverage 'Extremely Limited' by Broderick Perkins Real Estate News and Advice January 15, 2003 It's not that home warranties or those who issue them are deceptive. It's all right there in the small print -- disclaimers, exclusions, "weasel" clauses. The contract tells you what isn't covered and that's no small matter.  The problem is, many home owners don't discover just how limited home warranties truly are until they need coverage they think they have.

Jan 12 2003   Lawmaker to look into Mirasol woes  By Ron Wilson  San Antonio Express-News  U.S. Rep. Charlie Gonzalez is so frustrated over complaints about the Mirasol Homes public housing project and inadequate responses from the San Antonio Housing Authority that he will launch his own survey of residents' concerns, he said Friday.

Jan 11 2003 Your home warranty may not cover what you think. By: Jennifer Joseph News 25 Houston. It's the biggest investment most people will make in a lifetime -- a home. But when something goes wrong, you may not be covered by your warranty.

Jan 2 2002 Whose side are you on, Mr. President? By HELEN THOMAS Thomas is a Washington, D.C.-based columnist for the Hearst Newspapers. (helent@hearstdc.com) "The second way to enforce consumer rights is the private lawsuit. Bush's war on the trial lawyers can only please those from the consumer-be-damned school of corporate wrongdoing. In President Bush's  "compassionate conservatism," just whom does he feel compassion for? "

Dec 31 2002 Texas Supreme Court ruling on Centex vs Buescher. THE FOLLOWING MOTIONS FOR REHEARING OF CAUSES ARE DENIED:  00-0479  CENTEX HOMES AND CENTEX REAL ESTATE CORPORATION D/B/A CENTEX HOMES v. MICHAEL A. BUECHER, ET AL.; from Bexar County; 4th district (04-99-00337-CV, 18 SW3d 807, 03-31-00)

Dec 30 2002 Limiting Lawsuits, the Texas Way By RICHARD A. OPPEL Jr. New York Times. Then, in 1995, under Governor Bush, the Legislature passed a series of bills that made it harder to win big punitive-damage verdicts, narrowed the state's primary consumer protection law and limited what deep-pocketed defendants had to pay in multiparty lawsuits.

Dec 27 2002 Mobile home complaints will go to public  By Adolfo Pesquera  Express-News Business Writer. Consumers soon will be able to see for themselves which mobile home manufacturers have received the most complaints, once the state begins publicizing its quality lists.

Dec 22, 2002 Wealthy few helped GOP's state sweep By R.G. RATCLIFFE Copyright 2002 Houston Chronicle Austin Bureau On the House side of the Capitol, Bob Perry was the single largest donor to the political committee that helped coordinate the GOP takeover of the House. Perry gave $165,000 to Texans for a Republican Majority.

Dec 22 2002 Puking in Texas. Top donor spends big, stays in background By JOHN WILLIAMS and JANET ELLIOTT Copyright 2002 Houston Chronicle. The Texas Association of Builders wants lawmakers to establish the Texas Residential Construction Commission to resolve disputes between builders and new home buyers.

Dec 19 2002 New Home Warranties. Deception or Protection? A report on new home warranties by Homeowners Against Deficient Dwellings. (PDF Format) "The bottom-line on new home warranties, or at least for those reviewed for this report, and provided by many homebuilders, is simply Home Buyer Beware."

Dec 3 2002 If the builders don't get you and insurance doesn't get you, the lender could: Predatory lending picks S.A. residents' pockets  Ý By Adolfo Pesquera  Express-News Business Writer. Salas said a lender called Beneficial, a subsidiary of Household International, quoted her an interest rate under 11 percent for a $35,000 loan. Later, she realized the rate actually was almost 26 percent.

Dec 2 2002 QUIET RETREAT State settles on easy terms for Farmers Insurance Houston Chronicle.Judging by the relatively parsimonious settlement state officials wrung from Farmers Saturday, what Perry vowed to avoid appears to have come to pass. The settlement's relatively easy terms bode ill for the chances of effective insurance reform in the coming session of the Legislature.

Dec 2 2002 Carlos Guerra: Real solution to Texas' insurance woes isn't likely in 2003. San Antonio Express News. If the state's settlement with Farmers Insurance is indicative of things to come, Texas homeowners will keep paying the nation's highest insurance premiums for coverage that will keep shrinking.

Nov 19 2002 Perry tabs lobbyist to be chief of staff. Toomey, a former three-term state representative, replaces the outgoing Mike McKinney. The 52-year-old Toomey was chief of staff for former Gov. Bill Clements.

Most recently Toomey has lobbied for such corporate clients as AT&T Corp., Phillip Morris Management Corp. and Eastman Chemical Co. He also represented Texans for Lawsuit Reform.
 

Oct 29 2002 In defense of so-called 'greedy trial lawyers' By RICHARD M. ALDERMAN.Whether you have been defrauded by a stock broker, ripped off by a used-car dealer, injured as the result of a careless doctor, lost a parent to nursing home negligence or had medical problems because of a drug that didn't work as promised, trial lawyers are your only hope for compensation. And more importantly, lawsuits and the threat of lawsuits are the only way the marketplace will regulate and stop such practices.

(A bit of humor)
 

hypocrite n : a person who professes beliefs and opinions that they do not hold

Oct 10 2002  Austin Statesman Editorial. Throwing political stones from glass houses Friday, October 11, 2002   But the inconvenient fact in this case is that with the help of an outstanding trial lawyer, Abbott was awarded $10 million, tax free, in an out-of-court settlement after he was left partially paralyzed by a falling tree as he jogged down a Houston street in 1984.

Oct 9 2002 AG hopeful Abbott defends injury settlement. Some have criticized his call for lawsuit limits as hypocritical. Republican attorney general candidate Greg Abbott, who won a large settlement after an accident left him partially paralyzed, is facing new criticism that the award conflicts with his push for lawsuit limits.

Oct 9 2002 Abbott targeted for injury suit  By Bob Richter  Express-News Austin Bureau. "When he [Abbott] was desperately trying to find a lawyer to represent him, he was pleased to get me. Now that he's running for political office, he wants to criticize me for being a trial lawyer."

Oct 8 2002 Lawsuit brought Abbott $10 million settlement By David Pasztor AMERICAN-STATESMAN STAFF  Republican Greg Abbott, who has made "greedy" trial lawyers and excessive lawsuit judgments whipping boys in his campaign for attorney general, received a tax-free settlement worth more than $10 million in his own lawsuit stemming from the 1984 accident that left him in a wheelchair.

NOTE: Candidate Abbott has received large donations from Texans for Lawsuit Reform which advocates limits on awards and the use of mandatory binding arbitration.

Oct 12 2002 Ten Things Your Home Builder Won't Tell You By Terrance Noland  Smart Money January 2000

1. "I'll build your house on marshmallow."
2. "I'll not only cut corners ó I'll sever them."
3. "I am barely regulated."
4. "Public inspectors won't catch my shoddy work." "
5. "Your warranty may be worthless."
6. "You'll never see me once you move in."
7. "Good luck suing me."
8. "Your home won't look like the ones we toured."
9. "I haven't budgeted enough for decent light fixtures."
10. "You may wind up seeing double."

Oct 12 2002 Payola Justice: How Texas Supreme Court Justices Raise Money from Court Litigants TLR President Richard Weekley heads a strip mall development company (Weekley Properties) and owns part of David Weekley Homes. The Weekley brothers families contributed $60,000 to court justices in the period studied, making the justices more indebted to them than any other Texas family. At least part of the Weekley family's personal interest in the courts and the weakening of tort laws stems from its business. David Weekley Homes has been sued by dozens of angry customers, who allege, for example, that the company knowingly built inadequate foundations on shifting soils, causing new homes to crack.

Oct 12 2002  City: Home Not Safe, Forces Family Out New Homeowners Complain About Shoddy Construction. Coleman Homes said it's still trying to talk to the Morenos and their attorney, without any luck. The city said the family must leave by next Tuesday, and stay out of the house until it's fixed.

 

Oct 6 2002 Houston Chronicle Op-Ed. Texans' homes in the balance State candidates have some explianing to do By ROBERT HUTCHINS. Most states rigorously enforce home construction aspects -- carpentry, masonry, electrical, plumbing, heating and air conditioning, etc. Texas governments have been remiss. It is time to pay more attention to construction practices. We must improve, or enact, building codes specifically to address anything that may cause mold to grow.

Oct 4 2002 Power Brokers:  50 People, 30 Institutions  Supply 26% of TX Political Money. Seven Construction industry donors, led by home-builder Bob Perry, spent $2.4 million, accounting for 10 percent of The Texas 50 money. Road builder James Pitcock of Williams Brothers Construction came next ($188,250), followed by Richard and David Weekley of David Weekley Homes ($161,911).

Oct 4 2002 Insurance. Texas Home Insurance Crisis Roils Residents and Top Race By JIM YARDLEY New York TImes. A recent survey of more than 2,300 real estate agents in Texas found that 51 percent of them reported having at least one client who had been unable to secure coverage, while 70 percent had had a house sale delayed by insurance problems.

Oct 4 2002 KB Home Editorial: Call for independent SAHA audit has merit  San Antonio Express-News.  Reports to the commission from staff that repair work on the Mirasol Homes had been completed when it had not even been started is further cause for alarm.

Reference:  Fault found with housing project

Oct 4 2002 D.R. Horton. Arlington, Texas, Home Builder May Break Wal-Mart Profit Record  Fort Worth Star-Telegram  By Steve Mclinden  D.R. Horton -- founded in 1978 with one home site and a $ 3,000 loan -- is widely expected to post its 100th consecutive quarter of higher profits. That would eclipse Wal-Mart Stores' string of 99 quarters.

Oct 1 2002 Insurance/Mold. Suit against Farmers a poor case of leadership  By John R. Cobarruvias  (printed in the Houston Chronicle Aug 22 2002) If consumers had filed this suit, it would have been deemed "frivolous", yet when our elected officials file the suit, it is considered "leadership".

Oct 1 2002 Insurance/Mold. Mold Issue is "Unreal" According to Texas Regulator  Montemayor, speaking at a conference on mold sponsored by the Washington-based American Insurance Association, said that regulators must try to maintain reasonable solutions to a concern that is subject to fear mongering and ìquack science.î

NOTE: The Texas Governors Mansion was remediated of mold for $53,000. And the Texas Attorney Generals office was contaminated and remediated. If this was quack science, why were they remediated?

Sept 29 2002 General. Dangers within, Faulty construction, mold-attracting materials, builder shortcuts hazardous to new homes Andrea Jares Star-Telegram Staff Writer. Faulty building techniques, builder shortcuts during the construction boom and some materials that serve as food for mold are being blamed for mold moving into some new homes as fast as the new owners do.

Sep 26 2002 Tort Reform. Lobbyist list for the Texas Association of Builders from the Texas Ethics Commission website.

Name	Low Range	High Range	Position
David Sibley	$25,000	$49,999	Current Texas State Senator
Nancy Fisher	$50,000	$99,999	Director of Governamental Affairs TAB
Sara Senerfitt	$50,000	$99,999	Director of Regulatory Affairs TAB
Kristi Sutherfield	$100,000	$149,999	Exective Vice President TAB
Jay P. Brown	$10,000	$24,999	unknown
Machree Gibson	$10,000	$24,999	unknown
Galt Graydon	$10,000	$24,999	unknown
Lyle Johansen	$50,000	$99,999	Board of Directors Texas Civil Justice League
Shannon Swan	$10,000	$49,999	unknown
Totals	$315,000	$625,000	unknown

Sep 27 2003 KB Homes. Councilman threatens SAHA purge  By Ron Wilson  San Antonio Express-News  Steve Frase, a private home inspector hired by SAHA, and Aaron Seaman of KB Home, which built Mirasol, both said inspections turned up no structural problems at the homes.

Seaman said KB would stand by its work and voluntarily extended its one-year warranty to 10 years on all homes.

Sep 26 2002 KB Home. SAHA faces concerns from residents (09/25/02) [Video. Scroll down and select the story.]

Sep 26 2002 KB Homes. Councilman demands Mirasol Homes problems be fixed . [Link to story coming]

Sep 25 2002 KB Homes. Editorial: SAHA [San Antonio Housing Authority] needs accountability  San Antonio Express-News Low-income housing should not mean low-quality housing. SAHA commissioners need to hold contractors Magi Realty and KB Homes, architect Randy Bartholome and project manager Heery International accountable

Reference:  Fault found with housing project

Sep 18 2002 Tort Reform. Report: State high court favoring corporations Group says alliances are hurting consumers By ARMANDO VILLAFRANCA AUSTIN -- Recent Texas Supreme Court rulings indicate a shift toward a more conservative stance favoring corporations over consumers, according to a report released Tuesday.

Sep 11 2002 Corporate Corruption. Online special: Molly Ivins By MOLLY IVINS Creators Syndicate. As people become more cynical and disgusted by the rampant corruption of our politics by big money and by vapid or nasty political rhetoric, we sometimes forget just how moving real democracy can be. The 10,000 people who filled that hall represent the hope of this country. And that's a wonderful thing to think about on Sept. 11.

Sep 8 2002 Tort Reform. No shortage of campaign demagoguery By CLAY ROBISON. Houston Chronicle. Insurance reform, not tort reform, is beginning to make sense to more and more Texans because a lax regulatory climate shares as much -- or more -- of the blame for high homeowners insurance premiums and difficulties in medical malpractice coverage as "frivolous" lawsuits.

Sep 4 2002 Legislation.  Hearing audio of the Business and Commerce Committee on mold and insurance rates. Invited testimony only.

Sep 1 2002 General.  HOME BUILDING EXECS SOLD SHARES AT RECORD PACE. Executives across the US home-building industry have been selling shares in their companies at a record pace this year, suggesting they believe the country's housing market has peaked.

Aug 22 2002 Opinion. Suit against Farmers a poor case of 'leadership' Houston Chronicle. Our state cannot hide behind a double standard of tort reform. If consumers had filed this suit, it would have been deemed "frivolous," yet when our elected officials file the suit, it is considered "leadership."

Aug 14 2002Arbitration. The arbitration agreement in the Goodwinís homeowners insurance policy left them homeless and financially devastated.

On April 26, 2001 an 18-wheeler ran off of I-30 and crashed into our home when its driver had a heart attack. We had lived in our new home for only one day when the accident occurred, which rendered it uninhabitable.

The truck driver's insurance refused to pay for the repairs to our home claiming that the driverís heart attack was an ëact of God,í and therefore, not covered.

Aug 12 2002 Thanks to Texas Watch at www.texaswatch.org  for providing this information. Two Texas Legislative Committees are currently studying the effects of arbitration.  Go to http://capwiz.com/txwatch/issues/alert/?alertid=392556&type=CU    to send an email to the Committee Chairmen asking them to prevent companies from limiting consumerÇs rights through arbitration agreements.

Aug 12 2002 Arbitration From Texas Watch : You may have unknowingly waived your constitutional right to a trial by jury when you purchased you new home, used your credit card or made a long-distance phone call.? Today, mandatory arbitration agreements are found in almost all consumer contracts, and they are successfully being used by big corporations to block access to courts by consumers who have been treated unfairly.? Go to www.texaswatch.org to learn more about arbitration and its pitfalls for consumers.?

Aug 12 2002 KB Home Fault found with housing project   By Jeanne Russell  San Antonio Express-News:

Even with those expenses out of the way, SAHA paid $20 million to a joint venture team of Magi Realty and KB Home to build 247 single-family houses, an average of $81,000 per house, not including other costs related to building the development.

...When the joint-venture team submitted its designs, SAHA's top architect scrawled on them: "Crap!" "Weak!" "Trash!" "Hate it" "Start Over!

Aug 7 2002 General. Are homeowners being tricked? A lesson in taxes  "I don't think we're treating our consumers very well in Texas"  By Dan Lauck / 11 News KHOU Upclose. Houston Texas. (with video) Owning your own home. It's been the goal of Americans for generations. It's part of the American dream. In recent years that dream has become more affordable than ever before. But should the buyer beware?

Aug 3 2002 Arbitration. Consumers say arbitration means quick frustration  By Adolfo Pesquera  Express-News Business Writer. Consumers also have complaints about the high cost of an arbitration. Arbitration cases where damage claims exceed $75,000 typically cost consumers $6,000 to $20,000 more than trying the same case in court, say spokesmen for Public Citizen and the Association for American Retired Persons.