REHOBOTH BEACH, Del. - Three homeowners in the Osprey Point community have filed a lawsuit on behalf of some of the neighborhood against national builder NV Homes, claiming the company deceived buyers with promises of luxury amenities that were never delivered.
On Tuesday, the plaintiffs installed a large sign in the neighborhood, displaying marketing images they say NV Homes used to sell properties, including renderings of an infinity pool extending into the water. Homeowners argue that such features were not only unbuilt, but impossible to construct from the start due to state and federal wetland protections.
“There’s an infinity pool that extends into the water, and that is also impossible,” said plaintiff Phil Lertora. “There’s no way, across the wetlands, you could build that.”
The lawsuit alleges NV Homes, a subsidiary of NVR Inc., violated the Consumer Protection Act and the Delaware Uniform Common Interest Ownership Act, saying NV Homes deprived residents of millions of dollars in promised value.
front page of lawsuit
Homeowner Michael Clayton says the current state of the neighborhood is a far cry from what was advertised.
“We have construction equipment, we have overgrown vegetation, which is not what we were promised,” Clayton said. “So NV I guess it’s time to get your checkbook out.”
Homeowner and plaintiff Phil Lertora calls the situation tragic.
"This is exactly what a Netflix documentary is," said Lertora. "25,000 homes they sell a year, $10 billion company. And they've worked with developer after developer after developer, and they're trying to pin this on the developer. They're big enough to figure this out."
Both Clayton and Lertora say they tried to handle the situation amicably with NV Homes over the last several years, but when that didn't work, they say a lawsuit was their last resort.
When contacted for comment on this story, NVR Inc. declined, citing company policy.
M. Jane Brady, an attorney for the homeowners, told CoastTV News she believes the case could be worth upwards of $20 million.
The lawsuit will be heard in the Court of Chancery of the state of Delaware.