No implied warranty for subsequent buyer of home

Historically, a buyer of a good could not sue another party on a claim that the good was defective unless the buyer had a contractual relationship with the seller. That was known as “privity of contract” and was the rule in the U.S. until a key case involving a person who purchased a new automobile from a dealer. The person was injured in an accident caused by a defect in the car and sued the manufacturer. The court ruled that the buyer could sue the manufacturer instead of being barred because of lack of contractual privity with the manufacturer. But, elements of the doctrine of “privity of contract” remain. That was illustrated in this case. Here, the defendant built a home and sold it to a buyer in 1995. The buyer re-sold the home, and the new owners sold it in 2000 to the plaintiffs. In 2005, the plaintiffs sued the defendant for defective construction of the roof and gutters which allegedly caused water damage and mold.  The case involved claims of implied warranty and negligence. The trial court ruled that the plaintiffs could not prevail on their implied warranty claim because they didn’t buy the home from the defendant.  The court also ruled that the plaintiffs’ other claims were time-barred. On appeal, the court affirmed. Speight v. Walters Development Co., No. 6-1012/05-1996, 2007 Iowa App. LEXIS 111 (Iowa Ct. App. Feb. 14, 2007).