Lofts at Fillmore Condo. Ass'n v. Reliance Commercial Constr., Inc
In Lofts at Fillmore Condo. Ass'n v. Reliance Commercial Constr., Inc., 218 Ariz. 574,5, 190 P.3d 733, 734 (2008), the court addressed two issues--whether a non-vendor homebuilder gave an implied warranty of workmanship and habitability in a condominium conversion project, and whether residential homebuyers, who had no direct contractual relationship with the builder, could properly bring suit for breach of the implied warranty. 218 Ariz. 574,7, 14, 190 P.3d at 735, 736.
The court answered both in the affirmative.
As to the first issue, it held that the builder gave an implied warranty by constructing the new homes, even though it was not also the vendor. Id.13-14.
In addressing the second issue, the court cautiously expanded the exception to the privity requirement to allow suit, holding that "innocent buyers of defectively constructed homes should not be denied redress on the implied warranty simply because of the form of the business deal chosen by the builder and vendor." Id.17.