Wausau Homes Fails to Vet Local Builders, Class Action Alleges

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A proposed class action lawsuit alleges Wausau Homes works with “improperly vetted” local contractors to provide deficient and defective homes that prove to be “nightmares” for would-be homeowners. 

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The 33-page complaint out of Missouri alleges Wausau Homes is aware of “multiple, serious issues with local contractors,” such as defendant Phillips Builders, yet “has done nothing,” leaving consumers across nine states with “incomplete, damaged, deficient, and defective homes.” 

“Upon information and belief, thousands of individuals and homeowners have suffered breaches of contracts, covenants, guarantees, and warranties, as well as misrepresentations, fraud, and negligence at the hands of Wausau Homes and its local builders,” the case summarizes. 

At issue in the lawsuit are the “clear, indisputable promises” Wausau makes to homebuyers. According to the case, the company’s key pillars of “your way,” “firm price” and “on time,” coupled with guarantees of satisfaction, quality workmanship that “fits your family’s needs, and your budget,” and the help of local builders, are among the reasons why consumers select Wausau to build their future homes. Per the suit, Wausau boasts 76 franchises across Missouri, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, South Dakota and Wisconsin.

The lawsuit alleges, however, that Wausau has for years consistently broken its promises to consumers. The case relays that the plaintiffs, Missouri residents, entered into a contract with Wausau and selected their build after “painstaking research, planning, and hard-earned savings.” The home and its design and floor plans were confirmed with Wausau’s engineers and Phillips Builders prior to the start of construction, the suit relays. 

The plaintiffs say that although they trusted that Phillips was “a competent builder and contractor, vetted and verified by Wausau” and covered by the company’s guarantees, Wausau “does not provide testing or checks to verify the quality and competency of their local builders.” The plaintiffs claim that “a trend of broken promises and guarantees” by the defendants began five days after closing, when Phillips Builders relayed that the cost of materials was increasing. 

According to the complaint, an April 2021 deadline to lay the foundation and basement forms was not met, and the plaintiffs were told by Phillips that they would have to shell out an unplanned payment to have Wausau “hold” the framing, windows and other materials until the home’s foundation was ready. The following month, the plaintiffs’ foundation walls had been completed, yet concrete floor slabs still had not been poured or set as the work continued to fall further behind schedule, the lawsuit claims. 

From there, after an additional delay, the plaintiffs’ exterior and interior walls and framing were assigned to a different Wausau contractor, who “only created more problems,” the case says.

“The Wausau-assigned contractor that installed the exterior and interior walls and framing did not complete the work, and the work that was done was done incorrectly and with defects,” the lawsuit alleges. 

For the next several months, the filing continues, the plaintiffs notified the defendants of “a multitude of serious issues” plaguing the foundation, which had not set correctly and was the wrong size; the framing, which was also not done correctly; the window glass, as the glass in each window was incorrect; and the roof trusses, which were spaced incorrectly. 

“In short, the work of Wausau, Phillips Builders, and other Wausau contractors was shockingly deficient,” the case claims. 

According to the plaintiffs’ contract with Wausau, their home was to be substantially completed by June 1, 2021, yet the only work that was complete by this date was the exterior framing and foundation walls, with “everything else [] in various states of disarray,” the lawsuit alleges. In July 2021, the plaintiffs discovered water covering the entire interior of their unfinished home, with all of the materials within suffering damage, the suit says. That same month, the plaintiffs were hit with yet another unplanned payment, after which “[n]o work followed,” and in August the consumers were told that Phillips had used their last payment on their home for “a different project altogether” and was waiting to hear back from insurance before paying them back, the complaint says.

It was around this time that Wausau told the plaintiffs that Phillips Builders was “considering bankruptcy,” and advised them to hire an attorney, the case states. 

Per the filing, Wausau President Jay Schuette personally called and wrote to the plaintiffs regarding the foregoing incidents, stating that Wausau was “aware of at least nine other homeowners that were affected by Phillips Builders’ illegal and fraudulent actions.” 

Though Schuette promised that Wausau would “make sure all missing materials were provided” and do everything it could to alleviate the situation, the company has to this day “refused to correct its actions or the actions of its builders,” the lawsuit alleges. The plaintiffs were allegedly offered a one-time payment of $4,800 to address some of the problems while their home remains incomplete. 

“Now, the [plaintiffs’] interest rates have doubled and continue to go up, they have been forced to approach other contractors (with no success), and their savings have been depleted,” the complaint says. “They currently live in a travel trailer recreational vehicle with their two children instead of the promise Wausau home.” 

The lawsuit looks to cover all persons in Missouri who, from February 7, 2018 until the date a class is certified, purchased a Wausau home, and whose home was not completed as promised by Wausau and its contractors.

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