Issue: Under New Mexico law, can a builder be sued for misrepresentations regarding quality of a home?
| Area of Law: | Antitrust & Trade Regulation, Business Organizations & Contracts, Construction Law |
| Keywords: | Builder's misrepresentations; Auit against builder; Quality of a home |
| Jurisdiction: | New Mexico |
| Cited Cases: | 708 S.W.2d 8; 118 N.M. 671; 884 P.2d 827; 611 S.W.2d 611 |
| Cited Statutes: | N.M. Stat. Ann. §§ 57-12-2(D), -3, §§ 57-12-2(D)(7), (17); |
| Date: | 05/01/2001 |
Under the New Mexico Unfair Practices Act (the "UPA"), it unlawful for a person, in the regular course of his trade, to knowingly make any false or misleading statement or other representation in connection with the sale of goods or services which may, tends to, or does deceive or mislead any person. N.M. Stat. Ann. §§ 57-12-2(D), -3 (Michie 2000). Such unfair practices may include, but are not limited to, representations that "goods or services are of a particular standard, quality, or grade," if they are of another, and failure to deliver the quality of goods or services contracted for. Id. §§ 57-12-2(D)(7), (17).
Only one New Mexico case addresses whether a home builder may be sued under the UPA for failure to construct a home of the quality contracted for, and for misrepresentations in that context. See Kreischer v. Armijo, 118 N.M. 671, 674, 884 P.2d 827, 830 (Ct. App. 1994). In Kreischer the plaintiffs sued a builder, who was the sole owner and president of a construction firm with which they had contracted to build their home. Id. at 673; 884 P.2d at 829. The home was improperly constructed and unsafe. Id. The plaintiffs also alleged that the builder had made a variety of misrepresentations. Id. at 674; 884 P.2d at 830.
Although the Kreischer court did not fully analyze the application of the UPA, basing its holding instead on breach of contract, it noted that the stated allegations could support […]