A Sullivan County condominium developer that paid $6.9 million for manufactured modular homes claims that many of the units are defective.
Now Rachves Estates is demanding $1.2 million from Durabuilt Homes, in a complaint filed May 9 in U.S. District Court, White Plains, to fix the alleged problems.
Among the missing features, the complaint states, are crown moldings, screens and blinds, exterior siding, smoke detectors, faucets, toilet seats, locks and doors.
Durabuilt designs homes, builds them at its Selinsgrove, Pennsylvania factory in the Central Susquehanna Valley, delivers them to the housing site, and installs them as turn-key products.
Rachves is operated by Sima and Israel Bernath of Brooklyn and owns the condominium site on State Highway 42 in Woodbourne, Sullivan County.
Rachves ordered 66 Durabuilt homes. As units were delivered, Rachves site manager Bucky Loucks and a Durabuilt representative inspected the structures and noted missing items.
The first batch of 28 homes were complete and met Rachves’ expectations, according to the complaint. But the second batch of 38 homes were “incomplete, deficient and non-conforming.”
Rachves says it has paid Durabuilt the full $6,833,206 — $103,533 per unit — plus a $66,025 deposit. But Durabuilt has allegedly refused to provide the missing items or return the deposit.
Now, the developer says, it must buy missing materials and hire carpenters, electricians and plumbers to complete the condos for an estimated $94,000.
By failing to complete the homes, Rachves argues, it can no longer count on Durabuilt to honor the warranty, worth $1 million.
Rachves accuses Durabuilt of breaches of contract and breach of warranty. It is demanding nearly $1.2 million for the fixes, the deposit and the warranty.
Rachves is represented by Brooklyn attorney Malvina Lin.
Durabuilt did not respond to an email asking for its side of the story.
Rachves itself has been sued by 52 individuals who agreed to buy condos in complaints filed in Sullivan Supreme Court on March 31 and May 3. They claim that Rachves has refused to close on their deals or complete their condos.
The buyers are demanding $11.4 million for down payments and $6 million for damages. They are represented by Manhattan attorney Yisroel Schulman.