Highlights

• Court deadline looms: 19th Judicial District Chief Judge Donald Johnson has until Tuesday to rule whether the Dixon family lawsuit stays in court or goes to arbitration
• Potential class action: The Case could expand to include hundreds of Louisiana homeowners who bought D.R. Horton homes after 2007
• Arbitration fight: Homeowners claim they were deceived into signing arbitration clauses that force disputes into private proceedings
• HVAC system failures: Expert testimony reveals "negative pressure" systems causing moisture problems and mold growth across Louisiana homes
• Three-year legal battle: The case has bounced between state and federal courts since March 2022, with the appellate court setting a Tuesday deadline

Judge Must Decide Tuesday if Louisiana Homeowners Can Take D.R. Horton to Court Over Moldy Homes

A Youngsville family's three-year fight against the nation's largest homebuilder reaches a critical juncture this week, as a Baton Rouge judge faces a court-ordered deadline

BATON ROUGE, La. (KPEL News) — A lawsuit originating in Youngsville could have major implications across Acadiana, throughout the state, and beyond.

19th Judicial District Chief Judge Donald Johnson must rule by Tuesday on whether West and Alicia Dixon's lawsuit against D.R. Horton will remain in state court or be forced into private arbitration proceedings. The decision stems from a July 8 First Circuit Court of Appeal order that gave Johnson the deadline after years of legal wrangling.

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The Dixons have spent three years fighting for compensation for a home they say was not built to withstand Louisiana's humidity. The couple sued D.R. Horton, claiming the Youngsville house the Texas-based company sold them in 2014 had a faulty ventilation system that caused water damage, mold growth, and health issues.

Louisiana Families Share Stories of Moldy Homes

After nearly eight hours of testimony Wednesday, Judge Johnson heard accounts from the Dixon family and five other D.R. Horton homeowners who described living in homes they say are uninhabitable due to faulty ventilation systems.

West and Alicia Dixon, along with their four children, testified about water damage, mold growth, and health issues caused by what they claim is a defective HVAC system designed improperly for Louisiana's intense humidity.

Anna Pollock, a mother of four, told the court she evacuated her home in the same Sugar Ridge subdivision where the Dixons live. Pollock and her family moved to Georgia to escape mold issues that worsened her youngest daughter's asthma.

According to The Advocate, Pollock testified that D.R. Horton repeatedly came out to address problems but failed to fix the underlying issues, eventually abandoning the family and leaving repair work unfinished.

Expert Reveals Design Flaws in D.R. Horton Homes

Dustin Cole, who owns a Lake Charles heating and cooling company, testified as an HVAC expert about his October 2023 inspection of the Dixon home. Cole found "negative pressure" so severe in the master bedroom that it was depressurizing the entire house.

Cole explained to the court that HVAC systems are designed to circulate and return air properly, but when that process fails, pressure imbalances occur that can force outdoor humidity into homes.

This negative pressure system forces outdoor humidity into homes while failing to properly ventilate moisture, creating conditions for mold growth in Louisiana's climate.

Arbitration Clause at Center of Legal Battle

The case centers on whether the arbitration clause in Dixon's sales contract is valid. D.R. Horton's lead attorney, James Alcee Brown, argues the couple signed the binding arbitration agreement twice and must resolve their disputes outside of court.

According to The Advocate, Brown told Judge Johnson that the Dixons undisputedly signed the contract and initialed the arbitration clause on two separate occasions, which he argued was sufficient to prove the company's case for arbitration.

The Dixons testified they were never told about the arbitration clause and believed they were only signing a purchase agreement to secure their $1,000 deposit.

Alicia Dixon testified she would not have signed the contract if she had known about the arbitration clause, according to The Advocate's reporting.

West Dixon said he trusted the company representative completely, believing the document was simply a purchase agreement for the deposit. The sales representatives only warned them they could lose their deposit if they backed out after signing the contract.

Legal Expert: Arbitration Agreement Favors Builder

LSU law professor Kenya Smith, a contracts specialist, testified that the arbitration agreements amounted to an adhesionary "take-it-or-leave-it" contract that heavily favored D.R. Horton. Smith said the agreements gave the company exclusive remedies and hidden opt-outs — like keeping deposits or seeking attorney fees — not available to homebuyers.

Smith testified that the Dixons didn't have "nearly the equal bargaining power" in the deal, according to The Advocate.

Case Could Become Massive Class Action

If Judge Johnson rules that the case can proceed in court, it could become a class-action lawsuit representing hundreds of Louisiana homeowners. In December 2022, the Dixons amended their lawsuit to expand the proposed class, setting the stage for a class-action claim that could include as many as 1,000 plaintiffs.

The amended complaint indicates the class could include anyone who bought a D.R. Horton-built home after Jan. 1, 2007, and experienced similar defective design and construction issues.

D.R. Horton attorney Brown said the company has sold nearly 14,000 homes in Louisiana between 2007 and the end of 2022.

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Why Arbitration Matters to Homeowners

Plaintiffs' attorney Lance Unglesby argued that arbitration under construction industry rules would cost the Dixons well over $10,000 to pursue, far more expensive than court proceedings. He claimed D.R. Horton uses arbitration agreements to avoid accountability under Louisiana's New Home Warranty Act, which requires builders to repair construction defects for two years after sale.

According to The Advocate, Unglesby argued that parties cannot be bound to contract terms they had no reasonable opportunity to read and understand, emphasizing that the key question is whether the Dixons consented to all contract terms, not just whether they signed the document.

D.R. Horton's legal team did not cross-examine any of the witnesses. Brown made several objections as plaintiff attorneys questioned witnesses, but said he was reserving his questions for arbitration, where all evidence should be presented.

D.R. Horton Faces National Construction Issues

The Louisiana case reflects broader legal challenges facing D.R. Horton nationwide. The company faces approximately 60 lawsuits in South Carolina's Midlands region alone.

Recent settlements and ongoing lawsuits include a $16.1 million settlement in 2024 involving more than 200 homes in Easley, South Carolina. Homeowners alleged construction defects, including issues with roofs, I-joists, flashing, siding, and weather-resistant barriers, leading to water intrusion concerns.

In 2016, a Florida jury ordered D.R. Horton to pay $9.6 million to repair defects in a Jacksonville condominium development. Residents dealt with cracked stucco, leaking roofs, and faulty windows and sliding glass doors.

Louisiana Building Standards and Climate Challenges

The case highlights unique challenges of building in Louisiana's subtropical climate, where humidity levels regularly exceed 70% during summer months. The American Society of Heating, Refrigerating and Air-conditioning Engineers recommends maintaining indoor humidity below 65% to prevent mold growth.

Expert testimony revealed some D.R. Horton homes in Louisiana were maintaining indoor humidity levels of 70-80%, well above safe thresholds and creating conditions for mold and moisture damage.

Plaintiffs' attorneys claim they hired experts to inspect more than 50 homes across Louisiana, from Lake Charles to Slidell, finding similar HVAC design problems in each location.

Timeline: Three Years of Legal Battles

The Dixon case has followed a complex path through state and federal courts since the couple originally filed their petition in March 2022.

Johnson has presided over the case for most of the past three years. The case was transferred to federal district court for about 10 months before a federal judge remanded it to the 19th JDC in September 2023.

The two motions that Johnson must rule on by Tuesday were both filed by D.R. Horton in April 2022, less than a month after the Dixons lodged their original petition.

What Happens Next

Judge Johnson's Tuesday ruling will determine whether Louisiana homeowners can pursue their claims in open court or must resolve disputes through private arbitration. If the case proceeds in court, it could set a precedent for similar construction defect claims against major homebuilders operating in Louisiana.

The decision affects hundreds of Louisiana homeowners who purchased D.R. Horton homes and experienced similar moisture, mold, and HVAC problems.

D.R. Horton maintains that its homes meet all applicable building codes and that arbitration provides faster, more cost-effective dispute resolution than court proceedings.