Superior Court Upholds $20M Verdict against Pulte Homes

By | June 19th, 2017

The developer’s appeal of the award to Applecross Club Operations LLC, the operator of the golf course and clubhouse for the unfinished Downingtown, Pa. property, was denied because it could not prove it was under no obligation to build all of the homes originally slated for the project.

A three-judge Superior Court panel has let stand a $20 million verdict against developer Pulte Homes for breaching a deal to build a residential golf community in Chester County, Pa., The Philadelphia Inquirer reported.

Pulte was sued by partner Applecross Club Operations LLC, the intended operator of the golf course and clubhouse for the property that included Applecross Country Club in Downingtown, Pa., for scaling its residential-development plans back from 1,000 homes to just over 600, the Inquirer reported.

Applecross argued during a two-week trial in September 2015 that reducing the number of residences also reduced the value of its golf operation, and the jury agreed (https://clubandresortbusiness.com/2015/09/court-rules-in-favor-of-applecross-cc-in-20m-lawsuit/).

On appeal, Pulte argued that under its contract with Applecross, it was under no obligation to build all of the homes. But the Superior Court panel said the issue had been correctly decided by the trial court, which found that the agreement between Pulte and Applecross called for the larger project, the Inquirer reported.

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