How Eastwood Homes Uses This Clause
Eastwood Homes purchase agreements have been documented to include limitation of liability / no monetary damages provisions. In the Swygert's Landing litigation, the S.C. Court of Appeals also upheld a ruling that a contract provision limiting the builder's liability for damages upon cancellation was unconscionable and violated public policy. Buyers should check whether their Eastwood Homes contract limits recoverable damages even in cases of builder breach. (Source: S.C. Court of Appeals, Dawkins v. Eastwood Homes of Columbia, LLC, No. 2025-UP-239; Post and Courier, 2024) This clause has been the subject of litigation, including Swygert's Landing Contract Cancellation Litigation.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Eastwood Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Eastwood Homes'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 Mandatory Arbitration
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Regional Contract Patterns
Eastwood Homes operates in a more focused geographic footprint. Contract terms may vary somewhat between markets, but documented patterns tend to be consistent across the builder's operating states.
Standard Form Contract
This clause appears in Eastwood Homes'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 Eastwood Homes's use of this clause type.
Swygert's Landing Contract Cancellation Litigation
Nine buyers in Eastwood's Swygert's Landing subdivision on Johns Island, SC, sued after Eastwood canceled all their purchase contracts on the same day in June 2021, citing a paperwork error, and asked buyers to renegotiate at current market prices. Home prices ranged from $534,000 to nearly $609,000. A Charleston County Master-in-Equity ruled in 2024 that Eastwood's unilateral cancellation and damages-limitation contract provisions were unconscionable. The S.C. Court of Appeals upheld the ruling in July 2025 (Dawkins v. Eastwood Homes of Columbia, LLC, No. 2025-UP-239). The S.C. Supreme Court denied Eastwood's petition for review in March 2025, meaning the buyers prevailed at every court level. (Source: Post and Courier investigative reporting; S.C. Court of Appeals; Live5 News; Charleston County Court of Common Pleas, Case No. 2021CP1002829)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Eastwood Homes's operating states.
| State | Status | Note |
|---|---|---|
| North Carolina | Uncertain | North Carolina recognizes the implied warranty of habitability for new construction and has... |
| South Carolina | Likely Unenforceable | South Carolina courts have found similar builder contract provisions unconscionable. In Smith v.... |
| Virginia | Uncertain | Virginia generally enforces contractual liability limitations but recognizes the implied warranty of... |
Related Clauses in Eastwood Homes Contracts
This clause often works in combination with other provisions in Eastwood Homes's purchase agreements.
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
The damage cap limits recovery even for items covered by the express warranty.
What Buyers Can Do
- Understand what damages are excluded. The limitation may cover consequential damages, incidental damages, or all monetary damages beyond the purchase price. The scope of the limitation matters significantly.
- Ask whether the limitation applies to construction defects. Some liability limitations are drafted broadly enough to encompass defect claims. Clarify whether defect-related damages are capped or excluded.
- Review the Swygert's Landing Contract Cancellation Litigation case. The Swygert's Landing Contract Cancellation Litigation ruling may be relevant to your situation. If you are buying a Eastwood Homes 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 Eastwood Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.