How Smith Douglas Homes Uses This Clause
Smith Douglas Homes purchase agreements have been documented to include class action lawsuit waiver provisions. Arbitration provisions in production builder contracts typically include a waiver of the right to participate in class action proceedings. This forces each buyer to pursue claims individually, which can be cost-prohibitive for defects affecting entire communities. Buyers should check whether their Smith Douglas agreement includes this waiver. (Source: common production builder contract pattern; buyers should verify in their specific agreement) This clause has been the subject of litigation, including WSOC-TV Siding Defect Investigation.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Smith Douglas 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
Combined with mandatory arbitration, buyers cannot pursue class relief in any forum.
Standard Form Contract
This clause appears in Smith Douglas 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 Smith Douglas Homes's use of this clause type.
WSOC-TV Siding Defect Investigation
WSOC-TV's Action 9 investigative unit reported that homeowners in at least two Smith Douglas neighborhoods (Locust Town Center and Dogwood Forest in the Charlotte metro area) experienced widespread siding cracking on houses that were only a few years old. Smith Douglas stated it would work with siding manufacturer Allura to address the issue. A separate class action against Allura for defective siding had previously settled for $12.5 million. (Source: WSOC-TV published reports)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Smith Douglas Homes's operating states.
| State | Status | Note |
|---|---|---|
| Georgia | Likely Enforceable | Class action waivers in Georgia new construction contracts are likely enforceable, particularly when... |
| 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... |
| North Carolina | Likely Enforceable | Class action waivers in North Carolina new construction contracts are likely enforceable when paired... |
| Texas | Likely Enforceable | Class action waivers in Texas new construction contracts are likely enforceable, particularly when... |
Related Clauses in Smith Douglas Homes Contracts
This clause often works in combination with other provisions in Smith Douglas Homes's purchase agreements.
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 WSOC-TV Siding Defect Investigation case. The WSOC-TV Siding Defect Investigation ruling may be relevant to your situation. If you are buying a Smith Douglas 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 Smith Douglas Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.