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Liens Placed On Homes Over Problems With Subcontractor

Homeowners Listed as Defendants

POSTED: 1:37 am MDT June 20, 2007
UPDATED: 4:31 am MDT June 20, 2007

More than 200 home property owners in the Denver metro area are finding their names listed as defendants in a lawsuit because materials used to build their home were not paid for.

The lawsuit, called a Mechanics Lien, claims a subcontractor still owes money to a supplier of heating and air conditioning units that were installed in new homes. In many of the cases, the homeowner had no idea.

The attorney representing North Denver Winair says it's an "unfortunate situation." Donald Wilson says his client is still owed $291,000 by Barrett Barnes Heating and Air Conditioning Inc., which has filed for bankruptcy.

Calls to Barrett Barnes' former owner J. David Barnes were not returned Tuesday evening.

"It's not what you'd expect," said Misty Brown, who lives in the Tollgate Crossing neighborhood in Aurora. She bought her home from builder DR Horton last December and was served legal documents on Thursday.

"It was a pretty complicated document," Brown said. "Then I started thinking about what's next? How did I get in this mess? And what is DR Horton going to do to help?"

Court documents obtained by 7NEWS show the majority of homes affected in Arapahoe County were built by DR Horton in several different subdivisions including Tollgate Crossing and The Conservatory.

Wilson said similar cases have also been filed in Adams, Douglas, Elbert and El Paso Counties. The subcontractor also reportedly did work for other developers.

DR Horton corporate officials told 7NEWS Tuesday the company has been working toward a resolution with North Denver Winair for sometime.

"Occasionally, we have a subcontractor who goes out of business and doesn't pay," said Chief Legal Counsel Ted Harber. "We are working diligently to protect our homebuyers and their property from this action."

Wilson said that involving property owners, who likely presumed all building materals were paid for when they bought their home, is part of a state statute that dates back to the late 1800's.

"This is really a business transaction between businesses," Wilson said. "But unfortunately, the way the statute is written, home owners have to be involved."

Wilson said similar cases rarely go all the way to trial, and property owners are typically protected under title insurance.

Anyone who receives legal notice about this case is urged to locate title documentation presented at closing, then contact their title company. Homewoners can ask to "tender defense," which allows the title company to represent them through the legal process.

Additionally, DR Hortorn is urging it's home buyers to call corporate offices in Denver. The number is 303-356-0731. Customers should mention North Denver Winair.

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