Mark Haire and Karen Haire v. Nathan Watson Company and Fugro South, Inc.
Mark and Karen Haire (Haires) sued Nathan Watson Company (NWC), the subdivision developer, and Fugro South, Inc. (Fugro), a geotechnical engineering firm, for alleged negligence and breach of implied warranties under the Texas Deceptive Trade Practices Act (DTPA) due to severe foundation issues in their home. The trial court granted summary judgment to both NWC and Fugro. On appeal, the Court of Appeals for the Second District of Texas affirmed the summary judgment in favor of Fugro but reversed and remanded the summary judgment in favor of NWC. The court found that the "as is" provision in the Haires' home purchase contract did not apply to NWC or Fugro because they were not parties to the contract. However, the claims against Fugro were upheld due to the Haires' failure to challenge the "no-duty" argument for negligence and their pre-purchase knowledge barring the implied warranty claim.