Nephi homeowners file lawsuit against realtors and local companies, citing structural damage to new homes

Homeowners in Nephi, Utah’s Winn Ridge Community have filed a lawsuit against the construction company, real estate agents, and geotechnical engineering firm involved in the development of their homes, alleging serious structural damage. Twenty-two families who purchased homes built between November 2022 and December 2023 are experiencing issues such as cracks in foundations, shifting floors, and misaligned doors and windows. The lawsuit claims the defendants were aware of problematic soil conditions with a “moderate to high collapse potential” but failed to take adequate preventative measures or disclose the risks to buyers.

A geotechnical report from GeoStrata recommended specific foundation requirements, including structural fill and on-site observation during excavation, but the lawsuit alleges these recommendations were ignored and that GeoStrata’s reports falsely stated the site was suitable for construction despite observed issues. Homes in the community cost an average of $550,000, and homeowners invested significantly in their purchases.

A structural engineer’s assessment found that all homes in the community require full pier supports, with some deemed beyond repair. Homeowners are seeking financial restitution for their losses, court costs, and penalties against the defendants, hoping for stability and a resolution to the damage impacting their homes and emotional well-being.

(Source：Salt Lake City)