Sirrah Enterprises, LLC v. WunderlichAnnotate this Case
Because the warranty of workmanship and habitability is imputed into every residential construction contract, it is a term of the contract, and therefore, the successful party on a claim for breach of the warranty qualifies for an attorney-fee award under a controlling contractual fee provision or, barring that, Ariz. Rev. Stat. 12-341.01.
Defendants contracted with Plaintiff to build a basement at their home. Defendants refused to pay to the full contract amount after the work was completed, and Plaintiff sued for the unpaid contract amount. Defendants counterclaimed for breach of the implied warranty of workmanship and habitability. The jury found in Defendants’ favor on their claim for breach of the implied warranty. The trial court awarded Defendants attorney fees pursuant to a contractual fee provision and section 12-341.01. The Supreme Court affirmed the trial court’s judgment, holding that the implied warranty was a term of the contract, and as the successful party in the claim to enforce the warranty, Defendants were entitled to their reasonable attorney fees.