Indiana couple withhold home payment over construction defects, lose appeal against builder

An Indiana couple who paid $100,000 towards a $211,235 modular home but withheld the remaining amount over alleged construction problems have lost their appeal. The Indiana Court of Appeals on November 9 upheld a judgment requiring Tim and Judy McAfee to pay Goeglein Homes, LLC, a total of $221,704.According to the judgment document, the dispute began after the couple hired the company to install a modular home on their property. They raised concerns about the foundation, sloping floors and water entering the crawl space. They argued that the builder had not completed the work as agreed and should not demand the remaining payment.However, the builder maintained that it had substantially fulfilled its contractual responsibilities. It filed a breach-of-contract case after the couple refused to pay the outstanding amount.Couple withheld payment after home inspectionTim and Judy McAfee signed an agreement with Goeglein Homes in December 2021. The original price was $210,650, which increased to $211,235 after they selected a different stove.The company was responsible for preparing the foundation, obtaining permits and completing plumbing work. The couple had to arrange other tasks, including landscaping, electrical service, the driveway, well and septic system.The builder purchased the modular home from Cavco Manufacturing, LLC, and arranged its installation in October 2022. The couple paid $100,000 in December that year, leaving $110,235 outstanding.A home inspection in…