Lofts at Fillmore Condominium Association v. Reliance Commercial Construction, Inc.
Arizona Supreme Court
190 P.3d 733 (2008)
Reliance Commercial Construction (builder, defendant) converted a building into condominiums for a real estate developer (vendor), who then sold individual units to buyers who formed the Lofts at Fillmore Condominium Association (plaintiff). After discovering quality defects, the association sued the builder for breaching the implied warranty of workmanship and habitability, but the trial court granted the builder summary judgment because the buyers had no direct contract with it - their only contractual relationship was with the developer-vendor. The appellate court affirmed, and the association appealed further.
Whether an implied warranty arises from the construction of real property regardless of whether the builder is also the structure's vendor.