Lovein Ribman Texas Construction Law

Texas Construction Attorneys

What Damages can be Recovered Under the Deceptive Trade Practices Act (“DTPA”) in a Construction Defect Case?

Obtaining a finding that the Builder/Contractor violated the DTPA can be beneficial in that the court and/or arbitrator must award the Homeowner reimbursement of reasonable and necessary attorneys’ fees and costs.  Additionally, if the trier-of-fact finds that the Builder/Contractor’s conduct was committed “knowingly” (actual awareness) then the consumer may also recover damages for mental anguish and up to three times (known as “treble damages”) the amount of the economic damages.  If the trier-of-fact finds that the Builder/Contractor’s conduct was committed “intentionally” (actual awareness coupled with the specific intent that the consumer relied on the wrongful act) then the consumer may recover treble damages for both economic and mental anguish damages.  However, the RCLA limits the categories and types of damages a Homeowner can recover from damages arising out of a “construction defect”.  Since the RCLA does not expressly allow for treble damages or mental anguish, a Homeowner cannot recover treble damages or mental anguish damages if the wrongful act arises out of or is in any way related to the construction defect.  For example, a Builder/Contractor’s failure to honor an express warranty is a violation of the DTPA; however, even if the Builder/Contractor did so either knowingly or intentionally, the Homeowner could not recover mental anguish or treble damages because failing to honor the warranty is directly related to the construction defects.  Therefore, in order to recover mental anguish and/or treble damages in a construction defect case, Texas courts have held that the wrongful conduct must be unrelated to the defect claim.  Hypothetically, any conduct that falls under the above list or is unconscionable and does not in any way relate to the defective work, might be a basis to recover mental anguish and/or treble damages of the damage caused by the wrongful conduct.