How Tri Pointe Homes Uses This Clause
Tri Pointe Homes purchase agreements have been documented to include limitation of liability / no monetary damages provisions. New-construction purchase agreements typically limit the builder's liability for monetary damages. In Pardee Construction Co. v. Superior Court (Rodriguez) (2002), the California Court of Appeal found that Pardee's contract provisions waiving the right to recover punitive damages were contrary to public policy. Buyers should review whether the contract limits remedies to repair or replacement at the builder's discretion. This clause has been the subject of litigation, including Pardee Construction Co. v. Superior Court (Rodriguez).
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies. Because Tri Pointe Homes operates across multiple states, the enforceability and practical impact of this clause varies depending on where the home is located.
Tri Pointe 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.
Standardized Across Markets
Tri Pointe Homes'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 Tri Pointe 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 Tri Pointe Homes's use of this clause type.
Pardee Construction Co. v. Superior Court (Rodriguez)
The court ruled that Pardee's purchase agreement provisions requiring judicial reference were unconscionable contracts of adhesion, and that provisions waiving buyers' right to recover punitive damages were contrary to public policy. The court affirmed denial of Pardee's petition to compel judicial reference in construction defect claims brought by homeowners of entry-level residences in San Diego's Otay Mesa area. Review was denied by the California Supreme Court. (100 Cal.App.4th 1081)
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Tri Pointe Homes's operating states.
| State | Status | Note |
|---|---|---|
| California | Likely Unenforceable | California provides strong statutory protections for homebuyers under the Right to Repair Act (SB... |
| Colorado | Likely Unenforceable | Colorado's Construction Defect Action Reform Act (CDARA) and the Homeowner Protection Act of 2007... |
| Arizona | Uncertain | Arizona's Purchaser Dwelling Act provides statutory remedies for construction defects that exist... |
| Nevada | Likely Unenforceable | Nevada has among the strongest statutory protections for new home buyers in the nation. NRS Chapter... |
| Texas | Uncertain | Texas courts generally enforce contractual liability limitations but subject them to... |
| Washington | Likely Unenforceable | Washington has strong statutory protections for homebuyers under the Washington Building Code Act... |
| Oregon | Likely Unenforceable | Oregon has strong statutory protections under the Oregon Unlawful Trade Practices Act and recognizes... |
| Virginia | Uncertain | Virginia generally enforces contractual liability limitations but recognizes the implied warranty of... |
| Maryland | Uncertain | Maryland recognizes the implied warranty of habitability and has consumer protection statutes that... |
| North Carolina | Uncertain | North Carolina recognizes the implied warranty of habitability for new construction and has... |
Related Clauses in Tri Pointe Homes Contracts
This clause often works in combination with other provisions in Tri Pointe Homes's purchase agreements.
Arbitrators may be bound by the contractual damage limitation, further restricting buyer recovery.
Individual claims under the liability cap may be too small to pursue, and class aggregation is prohibited.
Together these clauses eliminate both the legal standard (habitability) and the remedy (damages).
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 Pardee Construction Co. case. The Pardee Construction Co. v. Superior Court (Rodriguez) ruling may be relevant to your situation. If you are buying a Tri Pointe 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 Tri Pointe Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.