In a case of first impression, the Superior Court of Pennsylvania in Conway v. Cutler Group, Inc., held that the implied warranty of habitability applies to a second or subsequent purchaser of a home. The Superior Court decision will allow the homeowners to proceed with their lawsuit against The David Cutler Group, Inc. in their claims that Cutler failed to properly install stucco on the home.

In Conway, a case which originated in the Bucks County Court of Common Pleas, the property owners who were the second owners discovered that water was infiltrating their home. Following an inspection, it was discovered that defects along the roof eave and wall junctures were improperly flashed. There was insufficient seal around expansion joints, a lack of expansion or control joints, and other defects relative to the stucco installation. The inspector recommended that the entire house be stripped of its stucco and replaced.

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