In its August 18, 2014 decision in the case of Conway v. Cutler, No. 80 MAP 2013 (Pa. Aug. 18, 2014)(Op. by McCaffery, J.), the Pennsylvania Supreme Court ruled that a subsequent purchaser of residential real estate cannot pursue a contractual claim for implied warranty of habitability as that claim is limited to original homeowners who had a direct contractual relationship with the builder/vendor.
According to some who practice construction litigation, this case is an enormous victory for residential homebuilders in Pennsylvania who have been subjected to litigation involving water intrusion into stucco clad homes. In the majority of these cases, the negligence claim is extinguished pursuant to the gist of the action doctrine and there is no express warranty claim for a subsequent purchaser. Without the implied warranty claim, these remote purchasers are left with no recourse.
I send thanks to Attorney Joe Walsh of the Lansdale, PA law firm of Walsh Pancio for bringing this decision to my attention hot off the presses along with explaining the impact of the same in construction litigation matters.
Anyone wishing to review this case may click this LINK.