How Shea Homes Uses This Clause
Shea Homes purchase agreements have been documented to include class action lawsuit waiver provisions. In Albano v. Shea Homes Ltd. Partnership (227 Ariz. 121, 254 P.3d 360, 2011), the Arizona Supreme Court addressed class action tolling in a construction defect case where homeowners attempted to use class action procedural protections. The court held that American Pipe class action tolling does not apply to Arizona's statute of repose, limiting the procedural tools available to homeowners pursuing collective claims against the builder. Buyers should verify whether the purchase agreement includes a class action waiver provision. This clause has been the subject of litigation, including Albano v. Shea Homes Ltd. Partnership.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
As a builder operating in the upper price segments, Shea Homes buyers may have somewhat more leverage to negotiate contract terms compared to entry-level buyers. However, the presence of this clause in standard purchase agreements means buyers should review it carefully regardless of price point.
Builder-Specific Details
Combined with Mandatory Arbitration
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Negotiation Potential
Shea Homes operates in higher price segments where buyers may have more leverage to negotiate individual contract terms. While the clause appears in standard templates, buyers of custom or semi-custom homes may have more room to request modifications.
Legal History
The following cases involve Shea Homes's use of this clause type.
Albano v. Shea Homes Ltd. Partnership
Homeowners in the Carriage Lane community in Gilbert, Arizona, brought construction defect claims against Shea Homes. The Arizona Supreme Court held that American Pipe class action tolling does not apply to Arizona's eight-year statute of repose (A.R.S. § 12-552), ruling that the statute of repose defines substantive rights and cannot be extended by class action tolling. The Ninth Circuit certified this question to the Arizona Supreme Court. (227 Ariz. 121, 254 P.3d 360)
Trilogy at Redmond Ridge Mold Class Action Settlement
Approximately 850 homeowners in the Trilogy at Redmond Ridge 55+ community in Washington State settled a class action involving mold issues for $2.4 million. The complaint alleged that Shea Homes failed to properly waterproof homes during construction, resulting in moisture intrusion and mold growth. (Reported by King 5 News and The Seattle Times)
Lindgren v. Shea Homes, Inc. (Ladera Ranch Copper Pipe Class Action)
A class action was filed on behalf of homeowners in the Sherborne, Lexington, and Sedona communities in Ladera Ranch, California, alleging defective copper pipe systems in homes constructed by Shea Homes. The class includes homeowners whose copper pipes had not been replaced and prior owners who replaced pipes at their own expense. The case is part of broader copper pipe litigation in Ladera Ranch involving multiple builders. (Settlement website: sheacopperpipeclassaction.com; Bridgford, Gleason & Artinian LLP)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Shea Homes's operating states.
| State | Status | Note |
|---|---|---|
| California | Likely Enforceable | Class action waivers in California new construction contracts are likely enforceable when paired... |
| Arizona | Likely Enforceable | Class action waivers in Arizona 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... |
| Washington | Likely Enforceable | Class action waivers in Washington 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... |
| Florida | Likely Enforceable | Class action waivers in Florida new construction contracts are likely enforceable when included in... |
Related Clauses in Shea Homes Contracts
This clause often works in combination with other provisions in Shea Homes's purchase agreements.
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Homeowners with similar habitability defects cannot combine their claims into a single action.
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 Albano case. The Albano v. Shea Homes Ltd. Partnership ruling may be relevant to your situation. If you are buying a Shea 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 Shea Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.