Vijai P. Gupta v. Ritter Homes

This is an appeal from a summary judgment granted in favor of the original homebuilder, appellee Ritter Homes, Inc., in a suit brought by the second owner of a used home, appellant Vijai P. Gupta. Appellant brought suit against appellee on three theories: implied warranty under the Deceptive Trade Practices Act, implied warranty under the Texas Business and Commerce Code and negligence. The trial court sustained the appellees motion for summary judgment, holding that no implied warranty exists on a used home or in other words, a homebuilder makes no implied warranty to a second owner who purchases a home from the original owner. On appellants theory of negligence, the trial court held that appellee owed no duty to appellant since no privity existed between appellant and appellee. We agree that in Texas no implied warranty exists on the sale of a used home, but we reverse and remand on the issue of negligence because privity is not required under the alleged cause of action for negligence.