Utah Builders Cheer a Legal Victory

Filed in Leadership, Legal by on June 8, 2017 0 Comments

Victory is sweet, and this video shows why the camaraderie that comes from HBA membership — and a little help from National — is even sweeter.

Four years ago, when a Utah radio station began airing ads about a company that promised to “cut out the middleman” for new home buyers, Cache Valley HBA members got a little suspicious.

The company, headed by one of the radio station’s ad salesmen, promised to sell buyers house plans and a step-by-step manual as well as a list of the plumbers, framers and other subs who could bid on putting the house together: no actual licensed trained professional contractor needed.

But these home builders knew their state has very strict business licensing laws, and this method could only lead to liability and potential heartbreak for the home buyer who fell for the deal.

In retaliation, when the ad salesmen threatened the HBA with an antitrust suit, the home builders fought back with the help of a grant from the NAHB Legal Action Fund. The action became a rallying cry for the members, we wrote in a 2015 NAHBNow blog post.

In October 2016, the court granted the HBA and builders’ motions, denying the plaintiff’s antitrust claims and finally bringing closure to this legal battle.

Twice a year, the NAHB Legal Action Committee reviews applications for assistance from HBAs around the country that have legal challenges of national significance to the housing industry or the potential for meaningful impact on housing industry issues.

The committee will discuss its next round of grants during the 2017 Midyear Meeting. Applications to be considered at the 2018 International Builders’ Show will be available later this summer. For additional information, contact Amy Chai.

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