The dispute originated when the McAfees withheld final payment on a modular home installation over foundation cracks, uneven floors, and crawl space moisture, subsequently locking out the builder's crew. A structural engineer later confirmed the structure complied with construction standards, noting the moisture stemmed from homeowner-maintained downspouts rather than builder error. The trial court found the builder had substantially performed its duties by March 20, 2023, while deducting $8,800 for incomplete tasks. The appellate court affirmed the decision because the homeowners prevented work completion and failed to contest the substantial performance finding.
Key points
Homeowners who bar contractors from a site risk liability if the builder has already achi…: Homeowners who bar contractors from a site risk liability if the builder has already achieved substantial performance.
An appellate court affirmed the full $221,704 judgment covering the outstanding contract…: An appellate court affirmed the full $221,704 judgment covering the outstanding contract balance, attorney fees, and witness expenses.
Expert testimony confirmed that the home met construction standards and attributed crawl…: Expert testimony confirmed that the home met construction standards and attributed crawl space water to homeowner downspout issues.
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An Indiana couple who paid $100,000 towards a $211,235 modular home but withheld the remaining amount over alleged construction problems have lost their appeal. The Indiana Court of Appeals on November 9 upheld a judgment requiring Tim and Judy McAfee to pay Goeglein Homes, LLC, a total of $221,704.
According to the
judgment document, the dispute began after the couple hired the company to install a modular home on their property. They raised concerns about the foundation, sloping floors and water entering the crawl space. They argued that the builder had not completed the work as agreed and should not demand the remaining payment.
However, the builder maintained that it had substantially fulfilled its contractual responsibilities. It filed a breach-of-contract case after the couple refused to pay the outstanding amount.
Couple withheld payment after home inspection
Tim and Judy McAfee signed an agreement with Goeglein Homes in December 2021. The original price was $210,650, which increased to $211,235 after they selected a different stove.
The company was responsible for preparing the foundation, obtaining permits and completing plumbing work. The couple…
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