American West sues LV homeowners over defect claims

By Steve Green

Published Tuesday, June 2, 2009 | 11:04 a.m.

Updated Tuesday, June 2, 2009 | 5:45 p.m.

American West says on its Web site that American West has been providing homes for the families of Southern Nevadans since 1984.

But in a newly filed lawsuit against 45 homeowners, American West Homes Inc. says that since Jan. 29, 2004, it has no longer existed as a corporation and therefore should not have to deal with construction defect claims filed against it since 2008 by those homeowners.

American West Homes Inc. sued the homeowners in the Classics Development last week in Clark County District Court, claiming they have been improperly asserting defect claims against American West and asking the court for a declaration that it has no obligation to respond to those claims or otherwise participate in the construction defect resolution process spelled out in Nevada law.

The homes at issue are in northwest Las Vegas in the area of Alexander Road and Durango Drive.

American West says that in 2008 it started receiving notices alleging defects in the design, construction, or both, of the homes. These notices were not filed within the two-year period the homeowners were allowed to assert such claims, the lawsuit against the homeowners says.

The claims also failed to comply with a state law requiring the homeowners to detail the alleged defects or damages to each home and when the damage or injury to each home was first noticed, the lawsuit says.

American West, headed by President Larry Canarelli, continues to build homes through his American West Development Inc. company.

Builder Magazine's 2008 list of the nation's largest homebuilders listed American West Development as tied at No. 79, down from No. 48 in 2007. The magazine said American West Development had 383 home closings in 2008 and revenue of $146 million.

Complicating the corporate ownership issue is that while the old American West Homes Inc. was dissolved, state records show a new one exists. The current American West Homes Inc. is headed by President Mark Dunford, a longtime Canarelli lieutenant. Dunford continues to work for Canarelli at a company called Development Management Inc.

Dunford said Tuesday that he has owned the currently incorporated American West Homes Inc. for several years and uses that company for land investments in Arizona and Utah.