Buyer Beware: Synthetic Stucco Lawsuits Blocked

Advisory Report - March 2001

Buyer Beware: Synthetic Stucco Lawsuits Blocked
Two judges in Alabama have blocked lawsuits over Dryvit's synthetic stucco product that covers an estimated 8,000 homes in Alabama.

According to the Associated Press (February 26, 2001), the lawsuits brought about by seven Alabama families claim that synthetic stucco traps water, which attracts termites and causes expensive damage.  Synthetic stucco manufacturers claim that the product is sound but is not being installed properly.  Judges ruled in favor of Dryvit Systems, Inc., who successfully argued that the company is protected under the doctrine "let the buyer beware: in the purchase of a used home.

The two judges in this case referenced a case against a construction company last year.  That ruling stated that "there is no implied warranty in the sale of a used home...and the rule of caveat emptor (let the buyer beware) still applies in such a sale."  The judges rejected plaintiffs' claims that synthetic stucco is a product bound by the Alabama Extended Manufacturer's Liability Doctrine., which allows manufacturers to be sued for fraud, suppression, misrepresentation and negligence.  The judges said EIFS is a combination of several different substances.

The judges said that Dryvit and other defendants had no obligation to tell buyers of existing homes about problems associated with synthetic stucco.  Other defendants in the case were Apache Products Company, a stucco applicator, and Herbert USX Realty Joint Venture, a developer.

Learn more about Exterior Insulation and Finish Systems (EIFS), or watch the U.S. Inspect video on EIFS.