Wyatt et al v. CMH Manufacturing, Inc. et al

In this federal consumer protection action, the Wyatt family purchased a new manufactured home from a Tennessee dealership, which was built by CMH Manufacturing, a subsidiary of Clayton Homes. Shortly after moving in, the home exhibited extensive water intrusion, toxic mold growth, structural floor failure, and defective roofing. The plaintiffs alleged that the manufacturer knowingly used substandard materials and violated express and implied warranties. The case, filed in 2023, went to trial in early 2025. On March 11, 2025, a jury returned a verdict finding CMH Manufacturing liable for breach of warranty and violations of the Magnuson-Moss Warranty Act. The court awarded compensatory damages for the diminished value of the home and personal property loss, along with punitive damages due to the company’s failure to address known defects.

The jury found in favor of the plaintiffs, awarding substantial compensatory and punitive damages. The verdict was entered on March 11, 2025, holding CMH Manufacturing and related defendants jointly and severally liable for the defective home and associated losses.

Whether the manufactured home suffered from design and construction defects that constituted a breach of express and implied warranties under federal and state law, and whether the manufacturer’s failure to repair or replace the home entitled the buyers to rescission, damages, and punitive relief.

The verdict sent a strong signal to the manufactured housing industry regarding corporate accountability for quality control and consumer safety. It prompted renewed calls for stricter federal oversight of construction standards, enhanced inspection protocols, and broader enforcement of the Magnuson-Moss Warranty Act, while empowering homeowners facing similar habitability issues to pursue legal remedies.