How D.R. Horton Uses This Clause
D.R. Horton purchase agreements have been documented to include class action lawsuit waiver provisions. Buyers waive the right to join or participate in class action lawsuits against the builder. This forces each buyer to pursue claims individually, which is often cost-prohibitive for smaller defects that affect entire communities. This clause has been the subject of litigation, including Robinson v. D.R. Horton.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because D.R. Horton operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
D.R. Horton's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Habitability Waiver
Homeowners with similar habitability defects cannot combine their claims into a single action.
Standardized Across Markets
D.R. Horton's scale means contract templates are largely standardized across its operations. This clause identified in one state's contract is likely present in other states' contracts, though local addenda may modify the terms.
Standard Form Contract
This clause appears in D.R. Horton's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
Legal History
The following cases involve D.R. Horton's use of this clause type.
Robinson v. D.R. Horton
A class action in which plaintiffs allege that D.R. Horton and its affiliated lender DHI Mortgage operated a "Monthly Payment Suppression Scheme" that presented buyers with artificially low monthly payment estimates. Plaintiffs are represented by Clarkson Law Firm, Varnell & Warwick, and the National Consumer Law Center.
Louisiana Class Action
Homeowners allege that HVAC units installed in their D.R. Horton homes cannot adequately handle Louisiana's humidity, resulting in persistent mold and condensation issues. D.R. Horton moved to compel arbitration; the judge denied the motion, allowing the case to proceed in court.
Nagano v. D.R. Horton
A class action involving allegations of defective galvanized metal foundation components in D.R. Horton homes in Hawaii. The court certified the class in January 2024. Trial is set for July 2026.
$16.1M Settlement (South Carolina)
D.R. Horton agreed to a $16.1 million class action settlement to resolve claims related to widespread construction defects in South Carolina communities. Source: Violation Tracker.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects D.R. Horton's operating states.
| State | Status | Note |
|---|---|---|
| Texas | Likely Enforceable | Class action waivers in Texas new construction contracts are likely enforceable, particularly when... |
| Florida | Likely Enforceable | Class action waivers in Florida new construction contracts are likely enforceable when included in... |
| South Carolina | Likely Enforceable | Class action waivers in South Carolina new construction contracts are likely enforceable when paired... |
| North Carolina | Likely Enforceable | Class action waivers in North Carolina new construction contracts are likely enforceable when paired... |
| Arizona | Likely Enforceable | Class action waivers in Arizona new construction contracts are likely enforceable, particularly when... |
| Georgia | Likely Enforceable | Class action waivers in Georgia new construction contracts are likely enforceable, particularly when... |
| Colorado | Likely Enforceable | Class action waivers in Colorado new construction contracts are likely enforceable when paired with... |
| Nevada | Likely Enforceable | Class action waivers in Nevada new construction contracts are likely enforceable when included in... |
| California | Likely Enforceable | Class action waivers in California new construction contracts are likely enforceable when paired... |
| Virginia | Likely Enforceable | Class action waivers in Virginia new construction contracts are likely enforceable when paired with... |
| Tennessee | Likely Enforceable | Class action waivers in Tennessee new construction contracts are likely enforceable when paired with... |
| Alabama | Likely Enforceable | Class action waivers in Alabama new construction contracts are likely enforceable when paired with... |
| Maryland | Likely Enforceable | Class action waivers in Maryland new construction contracts are likely enforceable when paired with... |
| Louisiana | Likely Enforceable | Class action waivers in Louisiana new construction contracts are likely enforceable when paired with... |
| Hawaii | Likely Enforceable | Class action waivers in Hawaii new construction contracts are likely enforceable when paired with... |
Related Clauses in D.R. Horton Contracts
This clause often works in combination with other provisions in D.R. Horton's purchase agreements.
Homeowners with similar habitability defects cannot combine their claims into a single action.
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
What Buyers Can Do
- Understand what the class action waiver means for community-wide issues. If multiple homes in your community have the same defect, this clause prevents you from joining together to pursue a shared claim. Each buyer must pursue their claim individually.
- Document everything from the start. If you cannot join a class action, your individual claim must stand on its own. Thorough documentation from before and after closing strengthens your position.
- Review the Robinson case. The Robinson v. D.R. Horton ruling may be relevant to your situation. If you are buying a D.R. Horton home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in D.R. Horton contracts that collectively limit buyer remedies. A contract scan can identify all of them.