Albrecht v. Clifford
436 Mass. 706 (2002)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
The sale of a new residential home by a builder-vendor in Massachusetts includes a non-waivable implied warranty of habitability, which protects purchasers from latent defects that render the home unsafe or unfit for human habitation.
Facts:
- In 1992, Alfred G. Clifford, an architect and general contractor, began construction of a single-family home on property he owned.
- In September 1993, Peter and Margaret Albrecht negotiated to buy the newly constructed home from Clifford, agreeing to an express warranty that covered systems like fireplaces for one year, provided they gave written notice of defects within that period.
- On October 26, 1993, the Albrechts purchased the residence from Clifford for $595,000.
- The Albrechts moved into the home in December 1993 but never used any of the nine fireplaces.
- In December 1996, a neighbor, whose home was also built by Clifford, informed the Albrechts that their fireplaces and chimneys were defective.
- Following the neighbor's warning, the Albrechts retained an inspector who confirmed that their home had similar significant defects in its fireplaces and chimneys.
- The Albrechts requested Clifford make repairs, but the parties were unable to agree on a solution.
Procedural Posture:
- Peter L. Albrecht and Margaret Page Albrecht filed a complaint against Alfred G. Clifford in the Superior Court.
- The Superior Court judge granted summary judgment in favor of Clifford on all claims.
- The Albrechts, as appellants, appealed the trial court's decision.
- The Supreme Judicial Court of Massachusetts transferred the case from the intermediate appellate court on its own motion.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Does the sale of a newly constructed home by a builder-vendor include an implied warranty of habitability under Massachusetts law?
Opinions:
Majority - Cordy, J.
Yes, an implied warranty of habitability attaches to the sale of new homes by builder-vendors. This warranty, which cannot be waived or disclaimed, ensures that a newly constructed home is safe and fit for human habitation. The court adopted this warranty for several policy reasons: it ensures buyers receive what they bargained for, protects them from latent defects that are difficult to discover, and places the burden of repair on the builder who is in the best position to prevent such defects. However, despite recognizing this new cause of action, the court held that the Albrechts' claim was barred by the three-year statute of limitations. The court rejected the Albrechts' argument that the 'discovery rule' should toll the statute, finding that the defects were not 'inherently unknowable.' It was unreasonable as a matter of law for the Albrechts to neither inspect nor use the fireplaces during the one-year express warranty period they had negotiated, and had they done so, they should have discovered the defects within the limitations period.
Analysis:
This landmark decision officially abandons the doctrine of caveat emptor for new home construction in Massachusetts, aligning the Commonwealth with the majority of U.S. jurisdictions. By establishing an implied warranty of habitability, the court created a significant new protection for consumers against latent defects that compromise a home's safety. However, the court's strict application of the statute of limitations serves as a crucial check on this new right, emphasizing that homebuyers have a duty of reasonable diligence to inspect their property and bring claims in a timely manner. This ruling will likely encourage greater care by builder-vendors while also compelling new homeowners to be proactive in identifying and addressing potential defects.
