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Richards v. Horton Inc.

The plaintiff had standing to pursue his claims against a homebuilder for alleged defective construction of his home under 11 U.S.C. § 554 c, since those claims were abandoned back to him when his bankruptcy case was closed after the bankruptcy court approved the trustee's report of no distribution.

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Mark A. Richards, pro se, filed the present appeal after the trial court dismissed his claims against his homebuilder D. R. Horton, Inc., various subcontractors and an insurance company collectively referred to as appellees.1 We now conclude that the trial court erred by dismissing Richards’ claims against D. R. Horton, but affirm the dismissal of his claims against the remaining appellees.

The pertinent facts, insofar as we can glean them from the voluminous record on appeal,2 show the following: In September 2010, Richards filed suit against D. R. Horton asserting claims based on the allegedly defective construction of his home. That case apparently was removed to federal district court, and in January 2011, Richards filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code in which he disclosed his “fraud” suit against “D. R. Horton.” In June 2011, the district court concluded that, because of the bankruptcy filing, the trustee was now the real party in interest to prosecute the claims asserted in Richards’ negligent construction suit and dismissed the complaint without prejudice.

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