TX STATETexas Court of Appeals, 5th District (Dallas)
2007

Sparks v. Booth

232 S.W.3d 853Texas Court of Appeals, 5th District (Dallas) • Decided 2007Modified

HOLDING

A homeowner sued builders Sparks and Covenant Builders for misrepresentations about design and construction that caused $219,121 in damages plus $498,242 in DTPA penalties. The court found the builders liable despite their arguments that the homeowners should have known about the problems and that the builders didn't cause the damages. This case shows that builders can be held responsible for false statements about their work, even when they claim the buyer should have caught the issues.

KEY FINDINGS

Change Order

Don't make false statements about design or construction quality—courts will hold you liable even if you think the buyer should have noticed the problems

Dispute Resolution

The 'constructive knowledge' defense (claiming the buyer should have known) rarely works; focus on accurate representations instead

FULL COURT OPINION