Attorney Trey Wilson - RL Wilson Law

20 February 2009

Mystic Shores Residents File Suit Against Unscrupulous Builder -- Comal County, Texas

R L Wilson, P.C. Law Firm today filed a lawsuit on behalf of its clients Larry and Lynda Restine against homebuilders JV Investments, Inc., Texas Hill Country Estates, and Joe Van Dyke. The suit, filed in the Comal County District Court, arises from material defects constructed into the Restines' Mystic Shores home by the homebuilders.

At least 35 construction defects alleged by the Restines have been confirmed by a Third-Party inspector appointed by the Texas Residential Construction Commission as part of the SIRP process. Though provided with a copy of the TRCC inspector's findings, the Defendants never appealed these findings. Accordingly, the contents of the inspector's report (that there are at least 35 items of non-compliance with TRCC standards)now constitute presumptions of construction defects in Plaintiffs’ home. See Tex.Prop.Code § 426.008(a).

In addition, the suit alleges that JV Investments, Inc., Texas Hill Country Estates, and Joe Van Dyke committed fraud and violated the Texas Trust Act by diverting the proceeds of the Restines' construction loan away from subcontractors and suppliers. The homebuilders drew 100% of the proceeds of the Restines' construction loan, but in many instances never passed these payments along to those who actually performed the work.

The Restines did not learn that many of the individuals and entities supplying labor and materials for the construction of their home were never paid until 77 days after they closed on and occupied the property. It was then that Joe Van Dyke executed an “Affidavit of Completion,” indicating that 20 suppliers and/or subcontractors on the residential construction project were not paid, and that a total balance of $52,394.10 was due and owing to such suppliers and subcontractors. Many of the unpaid suppliers and subcontractors have now filed liens against the home, thereby clouding the Restines' title and preventing them from re-financing the home to achieve a more favorable interest rate. In addition, various suppliers and subcontractors have threatened to commence lawsuits against the Restines in an effort to collect upon their unpaid Invoices. Others of the subcontractors have refused to perform repairs and/or corrections upon the residence because they were never paid.

This is not the first suit filed against the homebuilders in question. At least three other lawsuits have been filed against them by suppliers and subcontractors who were never paid. In at least one of these suits the unpaid subcontractors also sued the homeowners and sought to foreclose a mechanics lien.

The Restines seek unspecified damages in the lawsuit, and the full extent of their losses are not known. At this time, they are soliciting bids from new builders to repair the defects that they and the TRCC claim JV Investments, Inc., Texas Hill Country Estates, and Joe Van Dyke built-into the home. It is anticipated that the repairs will require the Restines to vacate the home and seek temporary housing for several weeks. In addition to costs of repair, it is anticipated that the Resines will face significant reductions in the fair market value of their home after the construction is completed.

The Restines are represented in their lawsuit by San Antonio Attorney Trey Wilson. Wilson also represented the Restines before the TRCC and guided them through the SIRP process, which was resolved in their favor.

Trey Wilson --Named By Scene in SA Magazine As One of San Antonio's Best Real Estate Litigation Attorneys -- September 2008 -- As voted on by peers