Meritage Homes Defective Construction Cases

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• Allegations: Homeowners in Texas and Florida began filing defective exterior stucco claims starting in late 2017—under the Texas Residential Construction Liability Act and Florida’s Construction Defect Statute. Meritage reports over 1,000 such claims, with roughly 500 settled.

• Nature of Claim: Meritage is seeking insurance coverage from AIG for property damage related to these defects and alleges AIG improperly denied or limited coverage.

• Award/Status: Coverage litigation is ongoing. Meritage seeks declaratory relief regarding policy obligations.

• Allegations: The homeowners allege “design and construction defects,” specifically an inadequately and improperly installed exterior stucco system that fails to resist cracking or drain moisture.

• Relief Sought: Compensation for repair costs, decreased market value, temporary housing, and potentially punitive damages under Texas’s DTPA and negligence claims.

• Status: Meritage attempted to compel arbitration, but the appellate court upheld the trial court’s denial. The case is proceeding.

• Allegations: Homeowners noticed cracks in the floor, walls, ceiling, and foundation. They filed a warranty claim, which was denied, and then sued.

• Nature of Case: Meritage then moved to enforce arbitration via JAMS arbitration rules.

• Outcome: The federal court granted summary judgment compelling arbitration, so the claims will proceed there.



  • Allegations: Construction defects across over 150 homes (specific defect types unspecified in the appellate summary).

• Dispute Center: Procedural—whether dismissals based on counsel emails were valid.

• Outcome: The appellate court vacated the dismissals and remanded the case for proceeding

 • Allegations: Engineering errors in slab/floor truss design led to “bouncy floors” in new homes with tile and granite countertops.

• Relief Sought: Breach of contract, negligence, negligent misrepresentation, and indemnity from the engineering firm.

• Outcome: Meritage prevailed—awarded $173,648.30 in damages, $155,877.45 in attorneys’ fees, $19,059.46 in costs, and $5,000 in sanctions.

 • Allegations: Construction deficiencies in a home—though specifics (stucco, water intrusion, etc.) appear in the court’s complaint documents (not publicly summarized here).

• Status: Filed and active.