Iowa High Court Extends Warranty's Reach to Successive Owners

DES MOINES , Iowa - Ruling on an issue of first impression, Iowa's Supreme Court has held that the common law of implied warranty applies to claims against homebuilders by successor property owners. Speight v. Walters Development Company Ltd., No. 103/05-1996 (Iowa Sup. Ct.).

The high court's Feb. 1 opinion reversed lower court decisions for Walters Development Co. and decided that the present owners of a 10-year-old home can utilize the warranty of workmanlike construction to sue the builder for recently discovered mold and water damage.

Robert M. and Beverly E. Speight contend that damage to a home they purchased …